It Adoption in Urban Thesis

Perception towards Information Technology Adoption
A Study of Customers Perception towards E-Banking Adoption in

Urban Areas of Nepal
Kiran Bhatt
Apex College
Exam Roll Number: 18220312
PU Registration Number:
A Graduate Research Project Submitted to
Apex College
Pokhara University
Submitted for the Degree of
Master of Business Administration
Kathmandu
July, 2021
APPROVAL SHEET
Recommendation for Approval
This Graduate Research Project prepared and submitted by Ms. Kiran Bhatt in partial fulfillment
of the requirements for the degree of Master of Business Administration has been supervised by
me and recommends it for acceptance.
Name and Signature of the Adviser:
Date:
Acceptance of the External Examiner
I approve the Graduate Research Project submitted by Ms. Kiran Bhatt. The grade sheet has been
submitted to the Dean, School of Business, Pokhara University through the college on a separate
evaluation sheet.
Name and Signature of the External
Examiner:
Date:
Viva Examination
Ms. Kiran Bhatt has successfully defended the GRP. We recommend it for acceptance. The
grade sheet has been submitted to the Dean, Pokhara University through the college on a separate
evaluation sheet.
External Examiner:
GRP Adviser:
Other members:
i
Date:
ii
CERTIFICATE OF AUTHORSHIP
I hereby declare that this submission is my own work and that, to the best of my knowledge and
belief. It contains no material previously published or written by another person nor material
which to a substantial extent has been accepted for the award of any other degree of a university
or other institution of higher learning, expect where due acknowledgement is made in the
acknowledgements.
…………………
Kiran Bhatt
July, 2021
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ACKNOWLEDGEMENT
The Graduate Research Project entitled “Customers Perception towards Information Technology
Adoption; A study of customer's perception towards e-banking Adoption.” has been prepared to
fulfill the partial requirement for MBA degree of Pokhara University.
I wish to acknowledge my deep sense of gratitude to Office of Dean of Faculty of Management,

Pokhara University and Apex College for giving me such a wonderful opportunity to explore my
abilities via this project.
I am extremely grateful to Prof. Prem Raj Pant, Faculty Development Advisor, Apex College for
providing this issue to conduct study and prepare research project.
I would like to express my deepest gratitude to my respected supervisor, Mr. Suman Dahal, for
providing necessary guidance, suggestions and encouragement at the time of research. Without
his supervision, GRP would not have been possible. Correspondently, I am very thankful to Mr.
Surendra Nepal for assisting in analysis of the result.
I would also like to extend thanks the Apex Library Team of Mr. Upendra Chaudhary and Mr.
Yogesh Sitaula from bottom of heart for providing their countless support and necessary
resources during my research. I would also like to acknowledge my profound gratitude to all the
respondents for their co-operation, valuable time.
Respectively, I would like to extend my sincere thanks to Apex College, faculty members and
my family who have been standing by side in difficulties.
Thank You
Kiran Bhatt
July, 2021
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ABBREVIATIONS
GRP Graduate Research Product
SPSS Statistical Package for the Social Sciences
VIF Variance Inflationary Factor
E-Banking Electronic Banking
ATM Automated Teller Machine
SMS Short Message Service
IT Information Technology
TAM Technology Acceptance Model
TRA Theory of Reasoned Action
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EXECUTIVE SUMMARY
This research aims to study the customer's perception towards information technology adoption;
a study of customer's perception towards e-banking adoption. It seeks to explain about the
customer's perception towards e-banking adoption. This study focuses on overall e-banking
service and the impact on e-banking adoption. However, future research can focus upon level of
consumer perception towards e-banking adoption in relation to different groups e-banking users.
This will have better understanding about behavior of consumers, variables associated with e-
banking as well as the impact on adoption level of consumers while using e-banking service.
This study examined how different perceived usefulness, perceived ease of use; risk awareness,
cost, and perceived behavioral control make impact on customer's perception towards e-banking
adoption. Correlation analysis has been done in order to find out the relationship between
independent variables and dependent variables. The study shows that three variables namely
perceived usefulness, cost, and perceived behavioral control have positive correlation with
customer's perception towards e-banking adoption.
This study focuses on determining the significance of independent variables i.e. perceived
usefulness, perceived ease of use, risk awareness, cost and perceived behavioral control on
Customer's perception towards e-banking adoption.
From the study, we can conclude that perceived usefulness, cost and perceived behavioral
control have significant impact on e-banking adoption while other factors have no significant
impact on e-banking adoption. So, we can say that customer's feel that perceived usefulness, cost
and perceived behavioral control is the most important factor for e-banking adoption in Nepal.
E-banking customers agree on the fact that using E-banking allows using banking services
quickly. Most of the users agree on the fact that it is easy to use e-banking services to accomplish
banking task. Most of the users disagree on the fact that it takes lots of time to learn how to use
e-banking services. Again, most of the users disagree on the fact that using e-banking services is
very costly. And some users agree on the fact that they have the ability to use e-banking services.
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The study shows that perceived usefulness cost and perceived behavioral control in the e-baking
are the main reason for limited number of e-banking users. The cost associated with e-banking
should be affordable to each banking customers and easy manual for using it to new customers as
well as aged peoples. Similarly, habits of peoples do also have biggest influence in the adoption
of e-banking services so that maximum awareness and availability should be focused in order to
increase users of e-banking services.
The study helps to identify the major factors of customer's perception which plays important role
in the e-banking adoption. This study also helps to examine the relationship between those
factors of customer's perception and e-banking adoption. In addition, this study helps to examine
the impact of factors of customer's perception related to E-banking which effects e-banking
adoption.
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TABLE OF CONTENTS
APPROVAL SHEET........................................................................................................................i
CERTIFICATE OF AUTHORSHIP...............................................................................................ii
ACKNOWLEDGEMENT..............................................................................................................iii
ABBREVIATIONS........................................................................................................................iv
EXECUTIVE SUMMARY.............................................................................................................v
LIST OF TABLES...........................................................................................................................x
CHAPTER I.....................................................................................................................................1
INTRODUCTION...........................................................................................................................1
1.1 Background.......................................................................................................................1
1.2 Statement of The Problem.....................................................................................................5
1.3 Objectives of The Study........................................................................................................7
1.4 The Hypothesis......................................................................................................................8
1.5 Significance of the study.......................................................................................................8
1.6 Limitations of the Study........................................................................................................9
1.7 Organization of the study.....................................................................................................10
CHAPTER II.................................................................................................................................12
LITERATURE REVIEW AND THEORETICAL FRAMEWORK.............................................12
2.1 Review of Literature............................................................................................................12
2.1.1 Concept of Information Technology............................................................................12
2.1.2 The Evolution of Information Technology...................................................................15
2.1.3 Electronic Banking.......................................................................................................16
2.1.4 Perception.....................................................................................................................19
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2.1.5 Theory of Reasoned Action..........................................................................................21
2.1.6 The diffusion of innovations theory.............................................................................23
2.1.7 Theory of Planned Behavior.........................................................................................25
2.1.8 Technology Acceptance................................................................................................27
2.1.3.2 Usage of Technology Acceptance Model........................................................................33
2.1.6 Comparison between theories.......................................................................................34
2.2 Empirical Review................................................................................................................38
2.3 Theoretical Framework........................................................................................................51
CHAPTER III................................................................................................................................54
RESEARCH DESIGN AND METHODOLOGY.........................................................................54
3.1 Research Design..................................................................................................................54
3.2 Population and Sample........................................................................................................55
3.3 Nature and Sources of Data.................................................................................................55
3.4 Instrumentation....................................................................................................................56
3.5 Reliability and Validity........................................................................................................56
3.3 Data Analysis.......................................................................................................................58
3.3.1 Descriptive Analysis.....................................................................................................58
3.6.2 Hypothesis Testing.......................................................................................................58
CHAPTER IV................................................................................................................................60
RESULTS AND DISCUSSION....................................................................................................60
4.1 Respondents Profile.............................................................................................................60
4.1.2 Age group of Respondents............................................................................................62
4.1.3 Educational Qualification of Respondents...................................................................63
4.1.4 Monthly Income of the Respondents............................................................................65
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4.2 Descriptive Analysis............................................................................................................66
4.2.1 Perceived Usefulness....................................................................................................67
4.2.2 Perceived Ease of Use..................................................................................................68
4.2.3 Risk Awareness............................................................................................................70
4.2.4 Cost...............................................................................................................................71
4.2.5 Perceived Behavioral Control.......................................................................................72
4.2.6 Customer's Perception towards e-banking Adoption....................................................73
4.3 Inferential Analysis..............................................................................................................74
4.3.1 Correlations Analysis....................................................................................................75
4.4 Regression Analysis.............................................................................................................77
4.4.1 Factors influencing customers perception towards e-banking adoption.......................78
4.5 Hypothesis Testing..............................................................................................................81
4.6 Discussions..........................................................................................................................83
CHAPTER V.................................................................................................................................87
SUMMARY AND CONCLUSION..............................................................................................87
5.1 Summary of Findings..........................................................................................................87
5.2 Conclusion...........................................................................................................................89
5.3 Recommendations................................................................................................................90
Bibliography..................................................................................................................................92
ANNEXURE...............................................................................................................................101
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LIST OF TABLES
Table 4. 1 Gender of the respondents............................................................................................61
Table 4.2 Age group of respondents..............................................................................................62
Table 4.3 Respondents based on Educational Qualification.........................................................64
Table 4.4 Respondents based on Monthly Income........................................................................65
Table 4.5 Perceived usefulness......................................................................................................67
Table 4.6 Perceived ease of use.....................................................................................................69
Table 4.7 Risk Awareness.............................................................................................................70
Table 4.8 Cost................................................................................................................................71
Table 4.9 Perceived Behavioral Controls......................................................................................72
Table 4.10 Customer's Perception towards e-banking Adoption...................................................73
Table 4.11 Correlation Analysis....................................................................................................75
Table 4.12 Model Summary of Factors influencing customer's perception towards e-banking
adoption.........................................................................................................................................78
Table 4.13 ANOVA.......................................................................................................................79
Table 4.14 Results of Factors Affecting Customer's Perception towards E-banking Adoption....80
Table 4.15 Summary of Hypothesis Test......................................................................................83
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LIST OF FIGURES
Figure 2.1: Theory of Reasoned Action......................................Error: Reference source not found
Figure 2.2 The diffusion of innovation Theory...........................Error: Reference source not found
Figure 2.3 Theory of planned behavior.........................................................................................26
Figure 2.4 Technology acceptance model.....................................................................................28
Figure 2.5: TAM 2-model..............................................................................................................32
Figure 2.6: Research Framework..................................................................................................52
Figure: 4.1 Gender of the respondents...........................................................................................61
Figure 4.2: Age group of respondents...........................................................................................63
Figure 4.3 Respondents based on Educational Qualification........................................................64
Figure 4.4 Respondents based on Monthly Income.......................................................................66
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CHAPTER I
INTRODUCTION
1.1 Background
The internet communication is one of the most recent developments in communication to be

developed with the first email being sent in 1972 in a split second (Poster, 2001). This
communication allows the transmission of seemingly limitless amounts of information across the
globe (Poster, 2001). The use of information and communications technologies (ICTs) have
changed the way of conducting business transactions and meeting the growing demands of
customers for most organizations. The use of ICTs has brought in new products, service market
opportunities and developing more information systems that are business oriented and support
management processes such as planning, controlling and co-ordination. One of the areas ICTs
has gained growing significance is in the banking sector where BFIs seek to be more
competitive, increase customer base, reduce transaction costs, improve the quality and timeliness
of response, enhance opportunities for advertising and branding, facilitate self-service and
service customization, and improve customer communication and customer relationship
management.
Computing technology and information systems represent substantial investments for

organizations; investments on which they hope to realize a return in areas such as efficiency and
improved decision making. Simply acquiring the technology, however, is often not sufficient; in
order to obtain the anticipated benefits, it must be used appropriately by its intended users
(Agarwal and Prasad, 1998)
These days, information technology (IT) is universally regarded as an essential tool in enhancing
the competitiveness of the economy of a country. It is commonly accepted today that IT has
significant effects on the productivity of firms. These effects will only be fully realized if, and
when, IT are widely spread and used. It is crucial, therefore, to understand the determinants of IT
adoption and the theoretical models that have arisen addressing IT adoption. There are not many
reviews of literature about the comparison of IT adoption models at the individual level, and to
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the best of our knowledge there are a smaller number at the firm level (Olievera and Martins,
2011).
As managements begin to recognize the importance of information technology (IT) to the core
business, demand for a governance model or a quality improvement framework such as Six
Sigma, total quality management (TQM), or business process reengineering (BPR) also
increases. However, two problems lie when adopting conventional quality models (Ahmad et.
al., 2013).
Constant technological change simultaneously creates threats to established business models,

while also offering opportunities for novel service offerings. Leading firms often seek to shape
the evolution of technological applications to their own advantage. With the advanced and
dynamic growth of technologies, how fast the consumers are accepting these technologies
depends on a number of factors such as availability of technology, convenience, consumers’
need, security etc. There have been a number of researchers addressing the consumers’ adoption
of new technologies. Therefore, this paper presents the literature review of the technology
acceptance models and theories leading to the development of the novel technology single
platform E-payment theoretical framework (Lai, 2017).
The decision of how and why people adopt or reject a particular technology has been a
prominent topic in the field of information system (IS), marketing and social science. For the last
three decades, researchers have aimed to understand, predict and explain the factors that
influence the adoption of technology at individual as well as organizational levels (Tarhin et.al.,
2016).
Recent advances in information technology have changed the way organizations work. Personal
computers do the work done earlier by mainframes. Computers are networked together in
organizations and users share programs, files and electronic messages. Telecommunicating is the
on the rise with the ability to connect to organizational computer system from home. The Internet
has provided an environment in which information can travel across organizational as well as
national boundaries. Such has been the advance in new technology that organizations find it
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increasingly difficult to make decisions regarding information technology adoption (Dasgupta
et.al., 1999).
In this 21st century, a worldwide system of commerce is evolving, in much the same way as
national markets evolved from local and regional networks. The modern economic environment
which is dominated by globalization, hyper-competition and the knowledge and information
revolution has revolutionized the way business is conducted. This new technological epoch is
apparent through intensified investment in computer-processing and data preparation appliances
in the manufacturing and service industries and telecommunications infrastructure, and also to its
widespread usage in government agencies, educational organizations, and, more recently, in the
household. As a result of this technological progress, the implementation and application of IT is
a significant driving force behind many socioeconomic changes. As the utilization and
commercialization of IT becomes more widespread throughout the world, the adoption of novel
IT can generate new business opportunities and various benefits (Ghobakhloo et.al., 2012).
Technology availability is quite often mistaken for technology adoption and use. Technology has
been made available to almost all tertiary institutions and at least some public schools. However,
in most tertiary institutions many professors still refuse to use technology to enhance their
lectures and many educators in schools have not yet “come on board” in a manner of speaking
(Govender and Govender, 2013).
It is but natural that adoption of new and fashionable products with latest IT-enabled systems is
higher and more prevalent among youths, and more so, with the Generation Z (Post-Millennia's
or iGeneration) and Millennia's who are believed to be more IT savvy and but have less
emotional intelligence than their predecessors. Electronic banking uses the internet and
telecommunication services as the delivery channel to conduct banking activities such as
transferring funds, paying bills, providing the mini statement, paying credit card bills, mobile
top-ups and so on. From the customers’ point of view, e-banking allows customers an easier
access to financial services and time saving in managing their finance. It also applies to the
customers belonging to the Generation Z, Millennia's and their predecessors in Nepal also. In
recent decades, e-banking has revolutionized the banking system all over the world, and Nepal is
also not an exception to it. All ‘A’ class financial institutions in Nepal provide ATM, internet
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banking, and mobile banking services these days. Although use of electronic communication and
internet in Nepal has been widely popular, adoption and use of e-banking has not proportionately
increased. Banks and financial companies to survey customers’ requirements on a regular basis
in order to understand factors that can affect their intention to adopt or use Internet and electronic
banking. Since youths including the Generation Z customers are one of the primary adopters of
innovation and new technology, it is relevant to study such customers’ perception towards the
adoption of e-banking in Nepal (Sthapit and Bajracharya, 2019).
The UK's first home online banking services known as Home link was set up by Bank of
Scotland for customers of the Nottingham Building Society (NBS) in 1983. The system used was
based on the UK's Prestel view link system and used a computer, such as the BBC Micro, or
keyboard (Tandata Td1400) connected to the telephone 3 system and television set. The system
allowed on-line viewing of statements, bank transfers and bill payments. In order to make bank
transfers and bill payments, a written instruction giving details of the intended recipient had to be
sent to the NBS who set the details up on the Home link system. Typical recipients were gas,
electricity and telephone companies and accounts with other banks. The account holder via
Prestel input details of payments to be made into the NBS system. A cheque was then sent by
NBS to the payee and an advice giving details of the payment was sent to the account holder.
Bankers Automated Clearing Service (BACS) was later used to transfer the payment directly.
Stanford Federal Credit Union was the first financial institution to offer online internet banking
services to all of its members in October 1994.Today, many banks are internet only banks.
Unlike their predecessors, these internet only banks do not maintain brick and mortar bank
branches. Instead, they typically differentiate themselves by offering better interest rates and
more extensive online banking features.
Banking started in Nepal in 1937 by the establishment of the Nepal Bank Ltd. Currently; there
are 28 commercial banks, 33 developments banks licensed and over 100 other financial
institutions that operate in Nepal (Shrestha, 2019). The banking sector is the major financial
services industry in Nepal that offers several banking services, such as acceptance of deposits,
granting of credit facilities, and management of loans, among others. Nepalese financial market
is late adopter of information technology including electronic payment, electronic banking.
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However, many of Nepalese private banks at present are providing electronic banking, electronic
payment. In response to competitive pressure in the banking industry, banks continued to make
significant investments in upgrading information technology platforms by automating and
centralizing various back-office activities to enhance the quality of service delivery to their
customers.
When we look at the historical development of electronic payment, electronic banking, we can
find that NABIL Bank was pioneer bank to introduce credit cards in 1990. After the introduction
of credit cards in Nepalese banking, various banks tried to come up with new service
innovations. Among them, Himalayan Bank was first bank to introduce ATM cards in 1995 and
it also introduced telephone banking, Kumari Bank was first commercial bank to start internet
banking in 2001 and Laxmi Bank was first to started mobile banking in 2004. When we look at
present, we can find that almost every financial institution is providing ATM facility. Similarly,
most of the commercial banks are providing internet banking and SMS banking services.
However, the electronic payment including mobile payment services are still new and primitive
in case of financial institution of Nepal. So, in most of the Nepalese banks, till today ATM and
branch are the primary delivery channels. Further, there are few users of mobile banking and
internet banking as these areas of innovations is new to Nepalese customers in Kathmandu
valley. Nepalese banks are motivated to adopt these new technologies to remain competitive in
the market. Therefore, we can say that Nepalese financial is slowly moving towards the
technology mediated medium such as electronic payment, electronic banking.
1.2 Statement of The Problem
Given the increasingly global bank environment, there is a growing need to utilize information
technology (IT) to achieve efficiency, coordination, and communication. This study explores
perception toward information technology adoption customer-oriented perspective in Nepal, an
environment that is culturally quite different from the developed economies of the West in terms
of technology adoption and usage (Yu and Fang, 2008).
Banking practices have undergone significant changes since the advent of the Internet. Banks
provide many services online, which are extremely convenient for banking customers. Electronic
5
banking (e-banking) has existed for decades, starting with automatic teller machine (ATM) in the
late 1960s (Broderick and Vachirapornpuk, 2002). Internet Banking makes it possible for banks
and their customers to do business from anywhere in the world. This greatly increases the bank’s
potential client base. Nevertheless, the global approach to banking that e-banking permit makes
it extremely difficult for regulatory authorities to enforce finance laws. Additionally, regulations
differ from nation to nation and banks are not always proficient in the financial laws for every
nation in which they have business (Flavian et.al., 2006).
Overtime, more and more concerns are associated with electronic banking, as the industry
branched out to phone and on line banking. However, regardless of the benefits obtained from e-
banking, e-banking in Nepal is passing into different challenges. Although, there has been a
rapid expansion of internet banking products and services by banks and financial institution in
Nepal e-banking services have not been widely adopted by bank’s customers. This may be due to
lack of trust, customer’s ignorance towards technologies and perceived risk towards the services.
Electronic banking is conducted by the customer instead of a bank teller, so there is no face to
face interaction. The customers do not seek any additional services or help on by pro-actively
contacting the bank. Some customers refuse to use these services because they feel they are
entitled to in-person customer service. On the other hand, there are Customer’s complains on the
issues with security and accuracy. At this situation, we need to analyze perception and
experience of customers toward e-banking services. Further, the role played by demographic
factors such as gender, age, occupation, income and education in adoption of e-banking are to be
analyzed. Further, we also need to analyze the risks, limitations and problems in using e-banking.
To obtain the research objective, this study is going to answer flowing questions
 Does Perceived usefulness expectancy have an impact on behavior intention of

customers in using electronic banking service?
 Does Perceived Ease to use have an impact on behavior intention of customers in using
electronic banking service?
 Does Risk awareness have an impact on behavior intention of customers in using
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 Does Cost have an impact on behavior intention of customers in using electronic banking
service?
 Received behavioral control has an impact on behavior intention of customers in using
1.3 Objectives of The Study
It is natural that adoption of new and fashionable products with latest IT-enabled systems is
higher and more prevalent among youths, and more so, with the Generation Z (Post-Millennia's
or iGeneration) and Millennia's who are believed to be more IT savvy and but have less
emotional intelligence than their predecessors. E-banking services are a product in question, as
the present study investigated into the perceptual aspects of urban areas peoples that would make
them adopt or abstain from the use of e-banking services.
Electronic banking uses the internet and telecommunication services as the delivery channel to
conduct banking activities such as transferring funds, paying bills, providing the mini statement,
paying credit card bills, mobile top-ups and so on. From the customers’ point of view, e-banking
allows customers an easier access to financial services and time saving in managing their finance
(Siam and Almazari, 2008). It also applies to the customers belonging to the Generation Z,
Millennia's and their predecessors in Nepal also.
In recent decades, e-banking has revolutionized the banking system all over the world, and
Nepal is also not an exception to it. All ‘A’ and 'B' class financial institutions in Nepal provide
ATM, internet banking, and mobile banking services these days. Although use of electronic
communication and internet in Nepal has been widely popular, adoption and use of e-banking
has not proportionately increased. Since youths including the Generation Z customers are one of
the primary adopters of innovation and new technology, it is relevant to study such customers’
perception towards the adoption of e-banking in urban area of Nepal. To attain the main study
objective, the following specific objectives have been pursued:
To explore the current usage level of E-banking among bank customers in urban areas of Nepal.
7
 To determine the factors and their impact on the usage of E-banking among bank
customers in urban areas of Nepal.
 To analyze the impact of perception of usefulness, ease of use, and risks on the adoption
and use of e-banking services
 To introduce solution to raise awareness in the use of electronic banking service.
1.4 The Hypothesis
Six hypotheses have been drawn for the purpose of identifying relationship between dependent
and independent variables in this study. These hypotheses were drawn from the theoretical
framework of the study.
Therefore, the following hypotheses are proposed:
H1: There is significant relationship between Perceived usefulness and customers' perception
towards e-banking adoption.
H2: There is significant relationship between Perceived Ease to use and customers' perception
H3: There is significant relationship between risk awareness and customers' perception towards
e-banking adoption.
H4: There is significant relationship between low cost and customers' perception towards e-
banking adoption.
H5: There is significant relationship between perceived behavioral control and perception
1.5 Significance of the study
Academic scope: Adding knowledge to people about services and electronic banking in generally
and customer behavior intention in particular. This study should be beneficial for the academic
8
institutions and individuals who might be interested in carrying out related researches in the
future.
Management implication: Help the banking managers in implementing a campaign to introduce

the characteristics of the electronic banking system, its benefits and how to use it. Raising
awareness about the benefits of using the system, diversifying the types of services, improve
services, provide value-added services such as paying utility bills, implementing marketing one
on one. Further, this research paper also provides guidelines to the policy makers to make
policies, rules and regulations on e-banking.
1.6 Limitations of the Study
This research work will base on the perception towards information technology adoption in
banking sector and transportation sector using Nepalese banks. The respondent will comprise
customer numbering1-100. It will examine the extent to which banks have embraced information
technology (office automation, computers) as well as determine the role information technology
has had on the customer (i.e., if they prefer the old ways of banking operations or if they prefer
the new and modern ways of banking operations and transportation services).
Despite the vivid affairs studied in the report, some imitations can still be seen in the study.
 Respondents from Kathmandu valley are taken for this research. However, there are also
other respondents outside Kathmandu valley which have not been included in the study.
 A time constraint has been one of the major problems because the topic is vast and time
is very limited.
 Limited numbers of samples were selected for the study and this sample may not be a
true representation of the entire population because the sample’s view might differ from
the view of the population.
 Resource allocated to the research was limited so it creates certain boundaries to the
researcher while gathering the information.
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 Researcher can’t be 100% sure that all the information given by the respondents were
true
1.7 Organization of the study
The study comprises of three main sections: preliminary section, body of the report and
supplementary section. The preliminary section consists of title page, acknowledgement,
approval sheet, and certificate of authorship, table of contents, list of tables, list of figures,
abbreviation used and executive summary.
This body of the report is organized into five main parts and they are as follows:
Chapter I: Introduction
The first chapter deals with general background of the study. It describes what this study is all
about and why this study is worth doing. It includes introduction of the topic, statement of
problem, objectives of the study, research hypotheses, and limitations of the study and structure
of the study.
Chapter II: Literature Review and Theoretical Framework
The second chapter deals with the review of earlier studies that are relevant to the problem
explored in this study. It includes review of literature related to the international studies as well
as review of studies in Nepalese context. It includes the summary of the major findings of
previous studies and they are presented in separate headings. On the basis of these literature
reviews, the conceptual framework for the study is constructed.
Chapter III: Research Design and Methodology
The third chapter describes the methodological aspects that were applied in this study. It includes
the research design, population and sample size, sampling method, nature and sources of data,
pilot testing, instrumentation, methods of data collection and data analysis.
10
Chapter IV: Results and Discussion
The fourth chapter contains systematic presentation and analysis of data. This chapter analyzes
the collected data through the use of various statistical tools and techniques as mentioned in the
chapter three. It tries to explain the relationship between factors and presents the result in the
form of tables. The last part of this chapter presents the major findings from the analysis of data
and discussions.
Chapter V: Summary and Conclusions
The fifth chapter includes the discussion, conclusion and implications of the study. It
summarizes the research findings of the study and appropriate implications are presented on the
basis of the conclusion of the study. The last part of this chapter presents the limitation and
recommendation for future research.
The final section of the report comprises of bibliography, appendix as questionnaire and
summary of responses. Bibliography includes name of reference books, writer of books and its
page and appendix are attachment of various supportive documents.
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CHAPTER II
LITERATURE REVIEW AND THEORETICAL FRAMEWORK
This chapter presents the research work previously done by many researchers related to
perception towards information technology adoption. It includes a brief review of literature that
consists of information retrieved from journal articles, research papers, books and other scholarly
documents. The literature review has been presented in a systematic way, presenting the history
of Information technology, different models and perception towards all these. The review
identified the gap of previous researches and justified the purpose of conducting the research on
this topic.
2.1 Review of Literature
2.1.1 Concept of Information Technology
Information technology (IT) is the use of computers to store, retrieve, transmit, and
manipulate data or information. IT is typically used within the context of business operations as
opposed to personal or entertainment technologies. IT is considered to be a subset of information
and communications technology (ICT). An information technology system (IT system) is
generally an information system, a communications system, or, more specifically speaking,
a computer system – including all hardware, software, and peripheral equipment – operated by a
limited group of IT users. Information technology (IT) refers to everything that businesses use
computers for. Information technology is building communications networks for a company,
safeguarding data and information, creating and administering databases, helping employees
troubleshoot problems with their computers or mobile devices, or doing a range of other work to
ensure the efficiency and security of business information systems. Demand for professionals in
this field is high and growing, and people entering the field have a range of career paths to
choose from (Stokdyk, 2019).
12
Information Technology is the application of technology to solve business or organizational
problems on a broad scale. No matter the role, a member of an IT department works with others
to solve technology problems, both big and small (Slyter, 2019).
The term IT is commonly used as a synonym for computers and their networks, but it also
encompasses other information distribution technologies, like television and smart phones.
Essentially, IT refers to anything related to computing technology (Calvello, 2019).
Information technology (IT) covers any form of technology, that is, any equipment or technique
used by a company, institution, or any other organization which handles information. It
incorporates computing, telecommunication technologies, and includes consumer electronics and
broadcasting as it is getting more and more digitized. Spearheaded by the computer, the decades
since the mid-1960s have been characterized by an extreme development (Grauer, 2001).
Information Technology (IT) is the bedrock for national development in a rapidly changing
global environment, and this challenges us to devise bold and courageous initiatives to address a
host of vital socio-economic issues such as reliable infrastructure, skilled human resources, and
other essential issues of capacity building. In addition, many banks have installed up-to date
modern computers that will enable them achieve communication and multimedia connection on
the Extranet, Intranet and internet. The personal computer has already had a huge effect on
business. But its greatest impact won't be felt until the PC‟s inside and outside a company are
intimately interconnected (Gates, 1995).
Information and Communication Technology (ICT) has become a significant gizmo for many
organizations and has created new strategic choices for them as well. The most obvious
examples are perhaps the banking industry where through the introduction of ICT, related
products such as Internet banking, Global System for Mobile Communication (GSM) banking,
Automated Teller Machines (ATMs), Electronic Fund Transfer (ETF), electronic payments,
online banking, telephone banking, smart cards, electronic home and office banking have
become a universal trend. The banking industry is one of the first organizations to largely invest
in ICT. These days’ banks depend largely on information and communication technology for
their daily operations. All the large numbers of customers attended to and book keeping being
13
handled manually before are now tackled with the use of ICT which requires little human effort.
It also provides the bank branches and their customers with latest financial information around
the world which may not have been be possible under manual system; and allows the preparation
and printing of customers’ statement of accounts, calculations of interest charges, shares and
trustees records. (Olumoye, 2013).
Electronic banking has experienced explosive growth and has transformed traditional practices in
banking (Gonzalez, 2008). In Cameroon, commercial banks’ huge investment in
telecommunication networks and various e-banking services can be seen as an effort towards
measuring up with global standard. This is among other reasons such as increased customer
demand, increased competition among banks themselves; derive minimized cost, new entrants,
and better service delivery (Muniruddeen, 2007).
However, during this development processes, it is expected that the developing countries will
face many unexpected and complex factors that inhibit the speed and scale of e-banking adoption
(Quresh & Davis, 2007). Electronic banking (e-banking) is the newest delivery channel of
banking services. The definition of e-banking varies amongst researches partially because
electronic banking refers to several types of services through which a bank’s customers can
request information and carry out most of their banking transactions using computers, televisions
or mobile phones (Daniel, 1999).
According to the Federal Trade Commission (FTC), Fact for Consumers (2006), Electronic
banking also known as an Electronic Fund Transfer (EFT), is defined as the use of computer and
electronic technology as a substitute for checks and other paper transactions. EFT is initiated
through devices like cards or codes that let you, or those you authorize, access your account.
Many financial institutions use ATM or debit cards and Personal Identification Numbers (PINs)
for this purpose. Some use other forms of debit cards such as those that require at the most, your
signature or a scan. In addition, electronic banking can be considered as a variety of the
following platforms: internet banking (or online banking), telemarketing banking, TV-based
banking, mobile phone banking and e-banking (or offline banking). Moutinho and Smith (2000)
emphasized that human and technology-based delivery channels were greatly linked with the
customers’ perceptions of how these bank services were delivered to them. They pointed out that
14
these perceptual outcomes would affect the level of bank-customer-satisfaction, retention, and
switching. However, for e-banking technologies to improve productivity, they must be accepted
by intended users (Venkatesh et.al., 2003). Venkatesh et al. (2003) noted that the research in
understanding user acceptance of new technology has resulted in several theoretical models with
roots in information systems, psychology and sociology.
2.1.2 The Evolution of Information Technology
Information technology has brought enormous changes, challenging how organizations are
structured and how businesses are run. Information technology is continually evolving, breaking
new barriers, defining new horizons, and bringing new dimensions to our lifestyle. Information
technology can simply be defined as a systematized body of tools, techniques and infrastructure
for generating, collecting, storing, processing and transmitting information and data. During the
late 1950s and throughout the 1960s, business data was processed through punched card
equipment, electronic accounting machines, and massive mainframe computers with far lower
capabilities than today's microcomputers. The data processing function, then, was the 14
responsibility of the electronic data processing (EDP) department. In 1970s the advent of
primitive multi-user networks as terminals got connected to the massive mainframes.
It was also the beginning of database management systems that came as a response to the
challenges posed by large volume of business data. This was the foundation era of information
system (IS), Management Information Systems (MIS), and Decision Support Systems (DSS).All
processes were centrally handled using applications software that were developed with the third
generation of programming languages. The next decades witnessed the fusion of
telecommunications and networking technologies for business deployment. This ushered in
distributed data processing, office information systems (OIS), and personal computers (PCs).
Prominent among the goals of business enterprises at this time was improvement in the quality of
products and services, hence, investments in total quality management (TQM) characterized the
strategy of the leading organizations of the 1980s.
In the 1990s, advances in technology made possible many innovations in programming

languages that even the most optimistic of technology enthusiasts would have thought impossible
15
only a few years earlier. Perhaps the greatest IT innovation of today is the „Information
Superhighway‟. With the full integration of telecommunications and computer technology have
come now new but distinct technologies such as the Internet, GroupWare and multimedia.
Today, as we move into the new millennium, the new competitive weapon is networks and the
velocity of data throughput in intranets and extranets, and around the world, through the internet.
The total breakthrough in information technology emerged in the mid-1990s. This period was the
era of information super highway which organizations use to expand business frontiers by using
15 the new technologies to exploit opportunities. Today's business environment is very dynamic
and it undergoes rapid changes as a result of technological innovation, increased awareness and
demands from customers. Business organizations, especially the banking industry of the 21st
century operates in a complex and competitive environment characterized by these changing
conditions and highly unpredictable economic climate. Information technology is at the center of
this global change curve.
2.1.3 Electronic Banking
E-banking is defined as the automated delivery of new and traditional banking products and
services directly to customers through electronic, interactive communication channels. E-
banking includes the systems that enable financial institution customers, individuals or
businesses, to access accounts, transact business or obtain information on financial products and
services through a public or private network, including the internet. Customers access e-banking
services using an intelligent electronic device, such as a personal computer (PC), personal digital
assistant (PDA), automated teller machine (ATM) (Encyclopedia Britannica online, 1991). Use
of computers and telecommunications to enable banking transactions rather than through human
interaction is e-banking. Its features include electronic funds transfer for retail purchases,
automatic teller machines (ATMs), and automatic payroll deposits and bill payments
(Encyclopedia Britannica online, 1991).
Daniel (1999) defines electronic banking as the delivery of banks’ information and services by
banks to customers via different delivery platforms that can be used with different terminal
devices such as personal computers and mobile phone with browser or desktop software,
telephone or digital television.
16
Electronic banking has vastly reduced the physical transfer of paper money and coinage from
one place to another or even from one person to another. Electronic banking systems can be
retail payment systems, such as Automated Teller Machine (ATMs) networks, point-of-sale
systems, and interbank payment systems. E-banking implies exchange of banking products and
services through electronic delivery channels. Electronic banking has been around for quite some
time in the form of automated teller machines and telephone transactions.
Electronic banking is an umbrella term for the process by which a customer may perform
banking transactions electronically without visiting a brick-and-mortar institution. The following
terms all refer to one form or another of electronic banking: personal computer (PC) banking,
Internet banking, virtual banking, online banking, home banking, remote electronic banking, and
phone bank. PC banking and Internet or online banking is the most frequently used designations.
It should be noted, however, that the terms used to describe the various types of electronic
banking are often used interchangeably.
There are many electronic banking delivery channels to provide banking service to customers.
Among them ATM, POS, mobile banking and internet banking are the most widely used and
discussed below.
ATM: Automated Teller Machine (ATM) is a machine where cash withdrawal can be made over
the machine without going in to the banking hall. It also sells recharge cards and transfer funds;
it can be accessed 24 hours/7 days with account balance enquiry (Fenuga and Kolade, 2010).
Internet banking: Internet banking allows customers of a financial institution to conduct

financial transactions on a secure website operated by the institution, which can be a retail or
virtual bank, credit union or society. It may include of any transactions related to online usage.
Banks increasingly operate websites through which customers are able not only to inquire about
account balances, interest and exchange rates but also to conduct a range of transactions.
Unfortunately, data on Internet banking are scarce, and differences in definitions make cross-
country comparisons difficult (Timothy, 2012)
17
POS: Point of sale (POS) also sometimes referred to as point of purchase (POP) or checkout is
the location where a transaction occurs. A ‘checkout’ refers to a POS terminal or more generally
to the hardware and software used for checkouts, the equivalent of an electronic cash register. A
POS terminal manages the selling process by a salesperson accessible interface. The same
system allows the creation and printing of the receipt (Worku et.al., 2016).
A point of sale (POS), or point of purchase, is the place where a customer executes the payment
for goods or services, and where it be in a physical store, where POS terminals and systems are
used to process card payments, or a virtual sales point such as a computer or mobile electronic
device (InvestopediaOnline, 2006).
Mobile banking: Mobile banking (also known as M-banking, m-banking) is a term used for
performing balance checks, account transactions, payments, credit applications and other
banking transactions through a mobile device such as a mobile phone or Personal Digital
Assistant (PDA). The earliest mobile banking services were offered over SMS, a service known
as SMS banking. Mobile banking is used in many parts of the world with little or no
infrastructure, especially remote and rural areas. This aspect of mobile commerce is also popular
in countries where most of their population is un-banked. In most of these places, banks can only
be found in big cities, and customers have to travel hundreds of miles to the nearest bank. The
scope of offered services may include facilities to conduct bank and stock market transactions, to
administer accounts and to access customized information (Tiwari et.al., 2007).
The ATM was one of the earliest electronic banking products, being introduced in the mid
1970’s. It provided customers with the ability to withdraw or deposit funds, check account
balances, transfer funds and check statement information. Electronic Funds Transfer (EFT) is
another electronic banking product that facilitates transfer of funds from any branch of a bank to
any other branch of any bank in the shortest time. Telephone banking is only a new electronic
banking product. It is rapidly becoming one of the most popular products. Customer can perform
a number of transactions from the convenience of their own home or office. In fact, from
anywhere they have access to phone. Customer can check balances and statements information,
transfer funds from one account to another, and pay certain bills.
18
2.1.4 Perception
Perception (from the Latin perceptio, meaning gathering or receiving) is the organization,
identification, and interpretation of sensory information in order to represent and understand the
presented information or environment (Schacter, 2011). All perception involves signals that go
through the nervous system, which in turn result from physical or chemical stimulation of
the sensory system (Goldstein, 2009) For example, vision involves light striking the retina of
the eye; smell is mediated by odor molecules; and hearing involves pressure waves.
Perception is not only the passive receipt of these signals, but it's also shaped by the
recipient's learning, memory, expectation, and attention (Gregory, 1987). Sensory input is a
process that transforms this low-level information to higher-level information (e.g., extracts
shapes for object recognition) (Bernstein, 2010). The process that follows connects a person's
concepts and expectations (or knowledge), restorative and selective mechanisms (such
as attention) that influence perception.
Perception depends on complex functions of the nervous system, but subjectively seems mostly
effortless because this processing happens outside conscious awareness (Goldstein, 2009).
Since the rise of experimental psychology in the 19th century, psychology's understanding of
perception has progressed by combining a variety of techniques (Gregory,
1987). Psychophysics quantitatively describes the relationships between the physical qualities of
the sensory input and perception. Sensory neuroscience studies the neural mechanisms
underlying perception (Gustav, 1860) Perceptual systems can also be studied computationally, in
terms of the information they process. Perceptual issues in philosophy include the extent to
which sensory qualities such as sound, smell or color exist in objective reality rather than in the
mind of the perceiver (Gregory, 1987).
Although the senses were traditionally viewed as passive receptors, the study
of illusions and ambiguous images has demonstrated that the brain's perceptual systems actively
and pre-consciously attempt to make sense of their input (Gregory, 1987). There is still active
debate about the extent to which perception is an active process of hypothesis testing, analogous
19
to science, or whether realistic sensory information is rich enough to make this process
unnecessary (Gregory, 1987).
The perceptual systems of the brain enable individuals to see the world around them as stable,
even though the sensory information is typically incomplete and rapidly varying. Human and
animal brains are structured in a modular way, with different areas processing different kinds of
sensory information. Some of these modules take the form of sensory maps, mapping some
aspect of the world across part of the brain's surface. These different modules are interconnected
and influence each other. For instance, taste is strongly influenced by smell (DeVere and Calvert,
2010).
The process of perception begins with an object in the real world, known as
the distal stimulus or distal object (Goldstein, 2009). By means of light, sound, or another
physical process, the object stimulates the body's sensory organs. These sensory organs
transform the input energy into neural activity—a process called transduction (Goldstein,
2009). This raw pattern of neural activity is called the proximal stimulus (Goldstein,
2009). These neural signals are then transmitted to the brain and processed. The resulting mental
re-creation of the distal stimulus is the percept
To explain the process of perception, an example could be an ordinary shoe. The shoe itself is
the distal stimulus. When light from the shoe enters a person's eye and stimulates the retina, that
stimulation is the proximal stimulus. The image of the shoe reconstructed by the brain of the
person is the percept. Another example could be a ringing telephone. The ringing of the phone is
the distal stimulus. The sound stimulating a person's auditory receptors is the proximal stimulus.
The brain's interpretation of this as the "ringing of a telephone" is the percept.
The different kinds of sensation (such as warmth, sound, and taste) are called sensory
modalities or stimulus modalities (Pomerantz, 2003).
2.1.5 Theory of Reasoned Action
When studying adoption of new technology, one of the most featured models in literature is the
theory of reasoned action, TRA (Venkatesh et.al., 2003). The theory of reasoned
20
action (TRA or ToRA) aims to explain the relationship between attitudes and behaviors within
human action. It is mainly used to predict how individuals will behave based on their pre-
existing attitudes and behavioral intentions. The primary purpose of the TRA is to understand an
individual's voluntary behavior by examining the underlying basic motivation to perform an
action (Doswell et.al., 2011). TRA states that a person's intention to perform a behavior is the
main predictor of whether or not they actually perform that behavior (Glanz et.al., 2015).
Additionally, the normative component (i.e., social norms surrounding the act) also contributes
to whether or not the person will actually perform the behavior. According to the theory,
intention to perform a certain behavior precedes the actual behavior (Icek and Thomas, 1986).
This intention is known as behavioral intention and comes as a result of a belief that performing
the behavior will lead to a specific outcome. Behavioral intention is important to the theory
because these intentions "are determined by attitudes to behaviors and subjective norms"
(Andrew and Colman, 2015).
In their book they start off from the assumption that “...human beings are usually quite rational
and make systematic use of the information available to them” (Ajzen and Fishbein, 2000). From
there they continue with this statement in mind and argue for when humans engage in an action,
a process of pondering the implications of the action takes place before engagement is preceded
to (Ajzen and Fishbein, 2000). The authors suggest that to understand behavior one must first
identify intentions of performing a behavior. They argue that in order to predict intention, the
underlying factors of intention must be understood. From here, the conceptual framework is
being shaped. The authors report the first determinant factor of intention as attitude (Ajzen and
Fishbein, 2000).
Znaniecki and Thomas (1958) regarded attitude as individual mental processes that define a
person’s actual and potential responses. Ajzen and Fishbein (2000) put attitude in a behavioral
context called attitude towards behavior. This term aims to explain an individual’s assessment of
taking action on this behavior, which is observed from an individuals’ standpoint, to be good or
bad. The second factor determining intention is called subjective norm. It implies that social
pressure is involved in humans’ perception of behavior. When people behave in a certain way it
is very likely social influences will affect a person’s intention to perform the behavior (Ajzen
21
and Fishbein, 2000). To get a better understanding of intentions it is necessary to take a step back
in the TRA model. The authors speak for the need of studying why individuals consume certain
attitudes and subjective norms. It originates from where beliefs are the foundation to attitudes
and subjective norms. Hence, attitudes stem from what is called behavioral beliefs, while
subjective norms are derived from normative beliefs. Behavioral beliefs could be described as if
an individual is positive towards a behavior; it will accelerate the process of performing the
behavior, while the opposite happens if anything negative concerns the behavior. Normative
beliefs refer to the motivation from others that would be supporting of a particular behavior and
the opposite reaction if they would disapprove (Ajzen and Fishbein, 2000).
All those factors result in a chain, starting from the foundations of beliefs into an actual behavior
being the outcome. This is illustrated in figure 2.1 below.
Behavioral Attitude
Believes
Behavioral Actual Use

Intention
Normative Subjective
Beliefs Norm
Figure 2.1 Theory of Reasoned Action

In a study written by Lee, Ham, and Kim (2013) they used the TRA model to predict and
understand consumers’ pass-along behavior of online video ads. The authors were able to
22
examine how the attitude towards pass-along behavior affected this particular behavior. Their
findings concluded, as participants had more positive attitudes toward passing along online video
ads, the subjective norm influenced their intention to pass on the ads. Additionally, participants
with more positives attitudes and social pressure from essential sources resulted in larger
intentions of passing-along ads.
2.1.6 The diffusion of innovations theory
To enrich the perspective of user adoption (Rogers, 2004) developed the diffusion of innovations
framework. His intention with the model was to find out “how properties of innovations affect
their rate adoption" (Rogers, 2004, p. 204). Adoption was defined as “a decision to make full use
of an innovation as the best course of action available" (Rogers, 2004, p. 21). The diffusion of
innovations is an acknowledged model in the literature of information systems. The framework
consists of a variety of different variables, all connecting to the rate of adoption of innovations.
(Rogers, 2004) explains that the rate of adoption can be viewed as how fast an innovation is
adopted by individuals in a social construct. Rogers argues that “49 to 87 percent of the variance
in rate of adoption can be explained by five attributes” (Rogers, 2004, p. 206). The main
attributes are relative advantage, compatibility, complexity, trial ability, and observability. Other
factors affecting the rate of adoption are the type of innovation-decision, communication
channels, the existing social system, and the extent of change agents’ promotion efforts.
Perceived Attributes of
Innovation
Types of Innovation
Decision
Communication Rate of Adoption of

Channels Innovation
23
Nature of the Social
System
Figure 2.2 The Diffusion of Innovation Theory
Trial ability has proved to be an interesting attribute in this model. Rogers explains it as “the
degree to which an innovation may be experimented with on a limited basis” (Rogers, 2004, p.
243). By allowing an individual to try out an innovation on a limited basis, it enables them to
explore the personal meaning with the innovation and how it would work on their own terms.
(Rogers, 2004) concluded this factor had a positive effect on adoption. The last attribute of this
model is observability, which is defined as “the degree to which results of an innovation are
visible to others” (Rogers, 2004, p. 244). Observability is also claimed to have a positive
influence on rate of adoption.
Communication channels are an important variable in determining rate of adoption. It allows an

innovation to be diffused, but it also impacts the rate of adoption. For example, mass media
channels may speed the rate of adoption for new adopters, while interpersonal channels may
slow down the rate of adoption for late adopters as it creates knowledge awareness (Rogers,
2004). Furthermore, the innovation decision process specifies that “the more people involved in
making an innovation decision, the slower the rate of adoption” (Rogers, 2004, pp. 206-207). In
accordance with Rogers’ model, the construct of our social system, the norms of which we abide
to and how our communication network is interconnected, affects an innovations adoption rate.
Weigel et.al., (2014) used the common characteristics of the diffusion of innovations theory, and
the framework of planned behavior in a meta-analytic study in an attempt to provide a model of
24
innovation adoption-behavior. By reviewing previous research within the field of adoption
behavior they were able to examine and validate the hypotheses of the two models. The authors
evaluated the past thirty years of information systems research that empirically had studied the
effects of the variables of innovation adoption. The results suggested and validated that all five
of Roger’s attributes of innovation were positively correlated to adoption. Besides, they draw the
conclusion that the two models are relevant even today when analyzing adoption behavior.
However, complexity was the one attribute that had the least significant correlation with
adoption behavior (Weigel et.al., 2014).
2.1.7 Theory of Planned Behavior
The theory of planned behavior (TPB) was conceived by Ajzen (1991) and became an extension
of the TRA model, trying to explain specific individual behavior. It can be distinguished from
the TRA model by the implementation of the perceived behavioral control variable affecting
intention to use. The major focus in this model is the intention that leads to behavior, but within
this model Ajzen (1991) added the variable called perceived behavioral control. He argues for
that “behavioral intention can find expression in behavior only if the behavior in question is
under volitional control” (Ajzen I. , 1991, p. 181). By volitional control he implies that an
individual at will can decide to perform this behavior or not. The decision is determined by
requisites as if an individual has resources to perform this behavior. Resources in this context are
defined as “time, money, skills, cooperation of others” (Ajzen I. , 1991, p. 182). These
fundamentals can be correlated to the perceived risk of performing behavior. (Ajzen I. , 1991)
provides an example to strengthen the correlation between perceived behavioral control and
behavioral intention. If two individuals try to master the art of skiing, and both individuals
having the intention of doing so, the individual with most belief in that he will control the skill of
skiing, will be the one who is more plausible to master this activity.
Attitude
Subjective Behavioral Actual usage

Norms Intention
25
Perceived
Behavioral
Control
Figure 2.3 Theory of planned behavior
For TPB, E-banking adopter’s attitude (ATT) towards the target behavior, subjective norms (SN)
about engaging in the behavior, and perceived behavior control (PBC) are thought to influence
behavior intention (BI) and actual behavior (AC). Perceived behavioral control (PBC) is
informed by beliefs about the e-banking adopter’s possession of the opportunities and resources
needed to engage in the behavior (Ajzen I. , 1991).
The TPB model has served as the theoretical basis in a previous research by Pavlou and
Fygenson (2006) where they investigated e-commerce adoption of consumers by the use of the
TPB model to explain and predict the process. The authors concluded that the power of the TPB
model in predicting behavior was valid. The researchers also proposed an extended model of
TPB by applying technology variables that are familiar from the TAM model, such as perceived
ease of use and usefulness. Other variables such as technological characteristics, PBC resources
(time, skills etc.), and product characteristics were used to enhance the predictive and
explanatory power of this framework.
A recently published study from Kroll and Moynihan (2015) examined how public managers
made use of performance information. The researcher conducted a survey addressed to middle
managers in Germany where the basis of the study was to utilize the theory of planned behavior.
The results of this study indicated an approval of the TPB model by explaining 76% of the
variation in performance information use.
2.1.8 Technology Acceptance
In general, acceptance is defined as “an antagonism to the term refusal and means the positive
decision to use an innovation”. Decision makers need to know the issues that influence on users’
decision to use a particular system so they would be able to take them into account during the
26
development phase. It is the common question of both practitioners and researchers that why
people accept new technologies. Answering this question may help them to better methods for
designing, evaluating and predicting the response of the users to the new technologies.
Technology acceptance models and theories have been applied in a wide variety of domains to
understand and to predict users’ behavior such as voting, dieting, family planning, donating
blood, women’s occupational orientations, and breast cancer examination, choice of transport
mode, turnover, using birth control pills, education, consumer’s purchase behaviors, and
computer usage. Several researched in the field of technology acceptance, developed frameworks
to assess the usage of particular developed and implemented technology.
A number of models and frameworks have been developed to explain user adoption of new
technologies and these models introduce factors that can affect the user acceptance such as
Technology Acceptance Model, Theory of Planned Behavior and Diffusion of Innovation
theory, Theory of Reasoned Action, Model of PC Utilization, Motivational Model, Unified
Theory of Acceptance and Use of Technology and Social Cognitive Theory and many studies
have used these traditional frameworks to conduct their researches and the rest combined
previous models or add new constructs to developed models to carry out their study.
2.1.8.1 Technology Acceptance Model (TAM)
The technology acceptance model (TAM) is an information systems theory that models how
users come to accept and use a technology. The actual system use is the end-point where people
use the technology. Behavioral intention is a factor that leads people to use the technology. The
behavioral intention (BI) is influenced by the attitude (A) which is the general impression of the
technology.
The prolific stream of research on information systems use takes a variety of theoretical
perspectives. Of all the theories, the Technology Acceptance Model (TAM) is considered the
most influential and commonly employed theory for describing an individual’s acceptance of
information systems. TAM, adapted from the Theory of Reasoned Action (Ajzen and Fishbein,
2000) and originally proposed by (Davis F. J., 1986)
27
The model suggests that when users are presented with a new technology, a number of factors
influence their decision about how and when they will use it, notably:
Perceived usefulness (PU) – This was defined by Fred Davis as "the degree to which a person
believes that using a particular system would enhance his or her job performance". It means
whether or not someone perceives that technology to be useful for what they want to do.
Perceived ease-of-use (PEOU) – Davis defined this as "the degree to which a person believes
that using a particular system would be free from effort" (Davis F. , 1989). If the technology is
easy to use, then the barriers conquered. If it's not easy to use and the interface is complicated, no
one has a positive attitude towards it.
Actual Usefulness
Attitude towards Actual system

use Use
Perceived ease of
use
Figure 2.4 Technology acceptance model
Previous research from Gentry and Calantone (2002) focused on a comparison of TRA, TPB,
and TAM to examine behavioral intention to use shop bots on the web. The results indicated that
the TAM model exceeded the other two models by displaying a variance of 81.2 % of the
28
explanation in behavioral intention, while TRA explained 43.2 %, and TPB were in between the
other two. This study confirms the statement of TAM explaining behavioral intent more
accurately in a technology environment. Another study made by Ashraf et.al., (2014) explains
the adoption of ecommerce across cultures with the utilization of the TAM framework. Perceived
ease of use and perceived usefulness was the most critical factors when examining consumers’
intention to shop online.
External variables such as social influence are an important factor to determine the attitude.
When these things (TAM) are in place, people will have the attitude and intention to use the
technology. However, the perception may change depending on age and gender because
everyone is different.
In 1986, Fred D. Davis proposed a new alternative based on the TRA model. The model is called
the technology acceptance model (TAM). It was developed with the intention of explaining and
predicting individuals’ acceptance behavior of a new technological innovation. Davis, (1986)
restructured the model to be applicable from a more technological view. He stated that the social
influences of TRA, the subjective norms mentioned earlier, does not fit into a technological
context of acceptance and adoption. This is what separates this model from the TRA model.
TAM’s theoretical background is based on the Theory of Reasoned Action (TRA) and it was
specially tailored for understanding user acceptance of information system model. The theory
postulates that an individual’s behavioral intention is the immediate determinant of behavior,
their attitude and subjective norm are mediated through behavioral intention and their behavioral
and normative beliefs are mediated through attitude and subjective norm. Intention is considered
a direct determinant of behavior in the TRA that is influenced by attitude (attitude toward
performing behavior), and subjective norms (Social pressure to perform behavior). TRA has
been tested and used extensively as well as its extension, the Theory of Planned Behavior (TPB)
by Ajzen (1991). Ajzen extended TRA by adding another construct called Perceived Behavioral
Control, which refers to an individual's perception of the presence or absence of requisite
resources and opportunities required to perform the specific behavior.
29
TAM is one of the most influential extensions of Ajzen and Fishbein's theory of reasoned
action (TRA) in the literature. Davis's technology acceptance model (Davis et.al., 1989) is the
most widely applied model of users' acceptance and usage of technology (Venktesh, 2000).
TAM replaces many of TRA's attitude measures with the two technology acceptance measures—
ease of use, and usefulness. TRA and TAM, both of which have strong behavioral elements,
assume that when someone forms an intention to act, that they will be free to act without
limitation. In the real world there will be many constraints, such as limited freedom to act
(Bagozzi et.al., 1992).
Because new technologies such as personal computers are complex and an element of
uncertainty exists in the minds of decision makers with respect to the successful adoption of
them, people form attitudes and intentions toward trying to learn to use the new technology prior
to initiating efforts directed at using. Attitudes towards usage and intentions to use may be ill-
formed or lacking in conviction or else may occur only after preliminary strivings to learn to use
the technology evolve. Thus, actual usage may not be a direct or immediate consequence of such
attitudes and intentions (Bagozzi et.al., 1992).
Instead of using the subjective norm, Davis (1986) uses the concept of external variables and
breaks it down into two concepts. These two concepts are perceived usefulness and perceived
ease of use, which are intended to explain the technological adoption of a new IT system.
Perceived ease of use was defined as “the degree to which an individual believes that using a
particular system would be free of physical or mental effort” (Davis 1986). This is a statement
that legitimates the idea of that perceived ease of use has a direct effect on the perceived
usefulness. When comparing both determinants, perceived usefulness has been shown by
previous research Davis (1986) to be the leading factor in determining intention to use. Both of
these concepts relate to attitude towards use by examining the model, but perceived usefulness
has a direct correlation to intention to use.
Venkatesh and Davis (2000) also added cognitive instrumental constructs into their model.
Those were job relevance, output quality, and result demonstrability. These constructs have been
drawn from different areas to fit into their context. Job relevance is defined as “an individual’s
perception regarding the degree to which the target system is applicable to his or her job”
30
(Venkatesh and Davis, 2000, p. 191). Job relevance is considered to have a direct effect on
perceived usefulness. This is based on the assumption that an individual knows what tasks are
needed for an innovation or system to perform, to connect with their job situation. The second
cognitive variable is output quality. It can be explained by an individual’s views on what a
system is capable of doing, their job situation, and by over viewing how good the system
performs certain tasks (Venkatesh and Davis, 2000). The third variable is result demonstrability.
It is directly correlated to perceived usefulness and is defined as “tangibility of the results of
using the innovation" (Moore and Benbasat, 1991). If the results of an innovation are more
tangible, individuals are more likely to positively perceive the usefulness of the innovation.
Finally, the authors chose to use a moderator variable, which is the experience factor.
Subjective norm Experience Voluntariness
Image
Perceived usefulness
Actual system use

31 Attitude towards using
Job relevance
Figure 2.5: TAM 2-model
2.1.3.2 Usage of Technology Acceptance Model
Several researchers have replicated Davis's original study (Davis (1989) to provide empirical
evidence on the relationships that exist between usefulness, ease of use and system use. Much
attention has focused on testing the robustness and validity of the questionnaire instrument used
by Davis. Adams, (1992) replicated the work of (Davis F. , 1989) to demonstrate the validity and
reliability of his instrument and his measurement scales. They also extended it to different
settings and, using two different samples, they demonstrated the internal consistency and
replication reliability of the two scales. Hendrickson et al. (1993) found high reliability and good
test-retest reliability. Szajna (1994) found that the instrument had predictive validity for intent to
use, self-reported usage and attitude toward use. The sum of this research has confirmed the
32
validity of the Davis instrument, and to support its use with different populations of users and
different software choices.
Segars and Grover (1993) re-examined Adams Adams et.al., (1992) replication of the Davis
work. They were critical of the measurement model used, and postulated a different model based
on three constructs: usefulness, effectiveness, and ease-of-use. These findings do not yet seem to
have been replicated. However, some aspects of these findings were tested and supported by
(Workman, 2007) separating the dependent variable into information use versus technology use.
Mark Keil and his colleagues have developed (or, perhaps rendered more popular sable) Davis's
model into what they call the Usefulness/EOU Grid, which is a 2×2 grid where each quadrant
represents a different combination of the two attributes. In the context of software use, this
provides a mechanism for discussing the current mix of usefulness and EOU for particular
software packages, and for plotting a different course if a different mix is desired, such as the
introduction of even more powerful software (Keil et.al., 1995). The TAM model has been used
in most technological and geographic contexts. One of these contexts is health care, which is
growing rapidly ( Rahimi et.al., 2018).
Venkatesh and Davis extended the original TAM model to explain perceived usefulness and
usage intentions in terms of social influence (subjective norms, voluntariness, image) and
cognitive instrumental processes (job relevance, output quality, result demonstrability, perceived
ease of use). The results strongly supported TAM2 (Venkatesh and Davis, 2000).
2.1.3.3 Criticism of TAM
TAM has been widely criticized, despite its frequent use, leading the original proposers to
attempt to redefine it several times. Criticisms of TAM as a "theory" include its questionable
heuristic value, limited explanatory and predictive power, triviality, and lack of any practical
value (Chuttur, 2009). Benbasat and Barki suggest that TAM "has diverted researchers' attention
away from other important research issues and has created an illusion of progress in knowledge
accumulation. Furthermore, the independent attempts by several researchers to expand TAM in
order to adapt it to the constantly changing IT environments have lead to a state of theoretical
chaos and confusion" (Benbasat & Barki, 2007). In general, TAM focuses on the individual 'user'
of a computer, with the concept of 'perceived usefulness', with extension to bring in more and
33
more factors to explain how a user 'perceives' 'usefulness', and ignores the essentially social
processes of IS development and implementation, without question where more technology is
actually better, and the social consequences of IS use. Lunceford argues that the framework of
perceived usefulness and ease of use overlooks other issues, such as cost and structural
imperatives that force users into adopting the technology (Lunceford, 2009).
2.1.6 Comparison between theories
In this section, TPB, DOI and TAM are compared with a view to establish justifications in favor
of theory model that are theoretically as well as empirically tested and found to have better
prediction power in understanding users’ intentions towards adoptions and continual usage of
Internet banking services.
2.1.6.1 Comparison between TPB and TAM
TPB is general theory of human behavior while TAM is developed to predict information
system/technology usage. Tam assumes that perceived usefulness and perceived ease of use are
always the determinants to predict the users’ behavioral intentions of information system use,
whereas TPB assumes those users’ beliefs are situation specific and cannot be generalized across
situations. In particular, it requires the development of instruments for almost every study
(Mathieson, 1991). This provides TPB with an additional advantage of capturing situation
specific variables, which is not present in TAM since perceived usefulness and perceived ease of
use are the two primary determinants of user's decision. In the case of TPB, a pilot study is
required to identify relevant outcomes, control variables in every context it is used, whereas
TAM’s constructs are measured in the same way in every study. The main reason for the TAM’s
popularity is perhaps due to its parsimony but (Venktesh, 2000) suggested that parsimony is both
strength and a limitation of TAM. TAM provides predictive information but does not provide
sufficient information that helps designers with the information required to create acceptances
for a new system (Mathieson, 1991). Furthermore, TAM does not explicitly include any social
variables. Davis (1989) argued that social norms are not independent of outcomes and omitted
them from the original TAM. However, they did acknowledge the need for additional research to
"investigate the conditions and mechanism governing the impact of social influences on usage
behavior" (Davis F. , 1989, p. 999).
34
Several studies have extended TAM by adding subjective norms in order to examine the effect of
subjective norms on intentions but have produced mixed results so far. (Mathieson, 1991)
subjective norms have no significant effect on intention while (Taylor and Todd, 1995) has
reported significant. Further, (Hartwick and Barki, 1994) found its effects under mandatory
settings and does not influence in voluntary settings, which is supported by (Venkatesh and
Davis, 2000). These lead researchers (Taylor and Todd, 1995) to conclude that social effects
might be complex and might affect decisions only in some situations. For example, people get
motivated by thinking that their friends or co-workers will perceive them as technology
sophisticated and start using technology. This motivation is more likely to be captured by TPB
than by TAM. In the Internet banking context, subjective norms have been found to have no or
little influence on intention (Tan and Teo, 2000). Tan and Teo, (2000) suggested that this might
be due to the fact that a potential adopter can get relevant information that is readily available
from banks, reducing the dependency of potential adopters on others.
Another major difference between TAM and TPB is in addressing behavioral control. TAM has
only one such variable i.e. perceived ease of use, which according to (Davis F. , 1989)refers to
user’s capabilities and the skills required using the system. This is similar to the internal control
factors defined by (Ajzen I. , 1991). External control factors include time, opportunity, resources
and the co-operations of others (Ajzen I. , 1991) can be argued that perceived ease of use has
addressed those but it is not explicit. Moreover, in a situation where internal control factors vary
from those in another situation, TAM’s constructs would not be able to address those situation
specific internal control factors. For example, studies have confirmed that self-efficacy, which
refers to an individual’s belief in his or her capability to perform a specific task (Bandura, 1977),
plays a significant role in understanding users’ intentions toward adoption and usage of
information system. Perceived ease of use does not have items that capture information on self-
efficacy. On the other hand, TPB captures variables for each situation and is more likely to tap
such factors.
In summary, TAM is information system-specific while TPB is not. TPB requires unique
operation in each situation in which it is used (Mathieson, 1991)suggesting development of
customized instruments for behavioral beliefs, normative beliefs and control beliefs, while TAM
35
is a general model and is robust across time, setting, populations and technologies (Venkatesh
and Davis, 2000) and its instrument is psychometrically sound. TAM is more parsimonious than
TPB, and is easier to apply in practice, giving TAM an empirical advantage over TPB
(Mathieson, 1991). Finally, TAM is superior to TPB in explaining behavioral intention to adopt
or use information systems (Luran and Lin, 2005).
Some consideration was also given to a decomposed TPB, which integrates TPB with TAM to
make it more information system specific and was found to have better prediction capabilities
than TAM. But considering the increase in model complexity as against the small increase in
predictive power as reported in earlier studies (Taylor and Todd, 1995), decomposed TPB is not
considered for this study.
The other approach is to extend TAM to include necessary constructs from TPB so that the
extended model retains underlying simplicity of TAM while improving its ability to predict
behavioral intention and explain information system usage. Riemenschneider et al (2003) argued
that hybrid model (combination of TAM and TPB) offers a richer explanation of the
determinants of adoption decision. In attempts to extend TAM with constructs from TPB,
subjective norms is dropped since its effect on behavioral intention is inconclusive in prior
studies, it was excluded by (Davis F. , 1989) due to theoretical and measurement problem
(Venkatesh and Davis, 2000) and subjective norms will not have effects on behavioral intention
if Internet banking services adoption is considered to be voluntary (Venkatesh and Davis, 2000).
This leaves attempts to extend TAM with perceived behavioral control. In most of the studies
that attempted this, it decreases the parsimony of their models. For example, (Mathieson, 1991)
with an objective to identify how technology and resources influence information system usage,
added a construct perceived resources to TAM. Perceived resources is defined by them as the
extent to which a user beliefs that he or she has the both personal and organizational resources
needed to use an information system. (Mathieson, 1991) considered perceived resources as a
subset of perceived behavioral control and operational zed it so as to be compatible with TAM.
Researchers (Mathieson, 1991) found that resources such as data, documentation and assistance
of others do not influence users’ acceptance. Moreover, if an individual has the necessary
resources such as hardware, software, and time and so on, perceived usefulness and perceived
36
ease of use should adequately explain information system usage, indicating the extended model
is less parsimonious than the TAM.
2.1.6.2 Comparison of TAM and DOI
Both TAM and DOI are concerned with individuals’ perceptions about innovation
characteristics, which influence the acceptance behavior. TAM, TRA, TPB and DOI have
different conceptualizations of perceptions. For example, TAM includes two perceptions, TRA
and TPB recommend beliefs need to be elicited from target users and could be different for each
innovation (Agarwal and Prasad, 1998) while DOI posits five perceived characteristics of an
innovation affect adoption behavior (Rogers, 2004). Although both TAM and DOI focus on
usage as the primary outcome of adoption process, DOI has gone beyond in explaining various
types of usage such as initial usage and continual usage (Rogers, 2004). As mentioned earlier,
TAM has been the most widely studied model in user's technology acceptance field and both the
constructs; perceived usefulness and perceived ease of use are empirically tested and found
consistent. In comparison, most of the studies on DOI have found only few constructs are
consistently related to adoption behavior (Agarwal and Prasad, 1998).
Plouffe et.al., (2001) claimed that DOI’s constructs explain a higher proportion of the variance
than TAM when they are used as antecedents to adoption intention. Although, TAM is more
parsimonious than DOI, it places relatively lower strains on respondents and researchers. But
reliance on TAM cans at times misleading (Plouffe et.al., 2001). For example, one could
conclude from prior studies that perceived usefulness plays a key role in explaining intention
while others might emphasis the importance of perceived ease of use. In DOI, although relative
advantage has a significant importance, its other constructs are found to be equally important.
Researchers (Plouffe et.al., 2001) commented that TAM’s parsimony can be traded-off by
adding richer set of constructs that enhances the prediction ability of the model.
37
2.2 Empirical Review
An empirical review on “Perception towards Information Technology Acceptance” is based on

observed and measured phenomena and derives knowledge from actual experiment of past
research.
A study has made an attempt to describe the e-banking adoption of customers in Cameroon by
extending the TAM by Fonchamnyo (2013). Accordingly, the study proposed that the adoption
of electronic banking could be modeled in terms of the TAM by selecting other control
constructs namely; perceived accessibility, perceived trust, perceived security, perceived
reliability, perceived cost of services, perceived awareness, perceived ease of use and
demographic characteristics, such as age, income level, gender and marital status. Moreover, the
results of the statistical analysis revealed that the above mentioned constructs employed prove to
have a significant influence on customers’ attitude towards e-banking adoption, though variables
such as; age, income, and cost of service have a negative relation with customers’ attitude
towards e-banking adoption. This study provides evidence that clearly reflect that customers
perceive e-banking in terms of its usefulness, ease of use, trustworthiness, cost effectiveness,
reliability, convenient, and accessibility. Electronic banking is seemingly becoming a matter of
need and holds the key that will help the banking industry to formulate their marketing strategy
as well as continue to compete in the globalized network and gain market competitive advantage
in the 21st century.
According to George and Kumar (2013) in Antecedents of Customer Satisfaction in Internet

Banking: Technology Acceptance Model (TAM), they redefined TAM to predict customer
satisfaction in the context of IB. An extended TAM model with additional construct PR was
empirically tested in the study and brought to light the positive effect of traditional TAM
variables, PEOU and PU, on customer satisfaction and the added construct PR has negative
effect on customer satisfaction. PR emerged as the strongest predictor variable and this unfolds
the need for banks to concentrate on mitigating user perceptions about risk for maximizing
customer satisfaction and, thereby, ensuring continuance of the use of IB. Among the predictor
variables, PR has the lowest mean and this provide little respite for banks in Kerala. However,
38
there is greater scope for banks to enhance customer satisfaction if customers are made to feel
safe to provide private and sensitive information over IB.
Oliveira and Martins (2011) made a review of literature of IT adoption models at the firm level.
Most empirical studies are derived from the DOI theory and the TOE framework. As the TOE
framework includes the environment context (not included in the DOI theory), it becomes better
able to explain intra-firm innovation adoption; therefore, we consider this model to be more
complete. The TOE framework also has a solid theoretical basis, consistent empirical support,
and the potential of application to IS adoption. For this reason an extensive analysis of the TOE
framework was undertaken, analyzing empirical studies that use only the TOE model, and
empirical studies that combine this model with the DOI theory, the institutional theory, and the
Iacovou et al. (1995) model, and concluding that the same context in a specific theoretical model
can have different factors.
According to Sthapit and Bajracharya (2019) conducted a research on Customer Perception

towards Adoption of e-banking Services in Kathmandu: A Survey of Business School Students.
The study from its data analysis concludes that the customer perceptions measured in terms of
usefulness, ease of use and risks significantly impact on use and adoption of e-banking services
by the customers in Nepal. The present study findings have matched with the proposition of
Technology Acceptance Model (TAM), as TAM posits that perceived usefulness and perceived
ease of use are positively and significantly associated with e-banking use.
As over the past twenty years the level of penetration and sophistication of information
technology (IT) has grown dramatically, with computer-based information systems actively
supporting all key business processes and significantly enhancing both the operational
effectiveness and the strategic direction of organizations of all types (Sapkotaa et.al., 2018).
Computing technology and information systems represent substantial investments for

organizations; investments on which they hope to realize a return in areas such as efficiency and
improved decision making. Simply acquiring the technology, however, is often not sufficient; in
order to obtain the anticipated benefits, it must be used appropriately by its intended users
(Agarwal and Prasad, 1998).
39
These days, information technology (IT) is universally regarded as an essential tool in enhancing
the competitiveness of the economy of a country. It is commonly accepted today that IT has
significant effects on the productivity of firms. These effects will only be fully realized if, and
when, IT are widely spread and used. It is crucial, therefore, to understand the determinants of IT
adoption and the theoretical models that have arisen addressing IT adoption. There are not many
reviews of literature about the comparison of IT adoption models at the individual level, and to
the best of our knowledge there are a smaller number at the firm level (Olievera and Martins,
2011).
As managements begin to recognize the importance of information technology (IT) to the core
business, demand for a governance model or a quality improvement framework such as Six
Sigma, total quality management (TQM), or business process reengineering (BPR) also
increases. However, two problems lie when adopting conventional quality models (Ahmad et.al.,
2013).
Constant technological change simultaneously creates threats to established business models,

while also offering opportunities for novel service offerings. Leading firms often seek to shape
the evolution of technological applications to their own advantage. With the advanced and
dynamic growth of technologies, how fast the consumers are accepting these technologies
depends on a number of factors such as availability of technology, convenience, consumers’
need, security etc. There have been a number of researchers addressing the consumers’ adoption
of new technologies. Therefore, this paper presents the literature review of the technology
acceptance models and theories leading to the development of the novel technology single
platform E-payment theoretical framework (Lai, 2017).
Tarhin et.al., (2015) find out that the decision of how and why people adopt or reject a particular
technology has been a prominent topic in the field of information system (IS), marketing and
social science. For the last three decades, researchers have aimed to understand, predict and
explain the factors that influence the adoption of technology at individual as well as
organizational levels.
40
According to Dasgupta et.al., (1999) recent advances in information technology have changed
the way organizations work. Personal computers do the work done earlier by mainframes.
Computers are networked together in organizations and users share programs, files and
electronic messages. Telecommunicating is the on the rise with the ability to connect to
organizational computer system from home. The Internet has provided an environment in which
information can travel across organizational as well as national boundaries. Such has been the
advance in new technology that organizations find it increasingly difficult to make decisions
regarding information technology adoption.
In this 21st century, a worldwide system of commerce is evolving, in much the same way as
national markets evolved from local and regional networks. The modern economic environment
which is dominated by globalization, hyper-competition and the knowledge and information
revolution has revolutionized the way business is conducted. This new technological epoch is
apparent through intensified investment in computer-processing and data preparation appliances
in the manufacturing and service industries and telecommunications infrastructure, and also to its
widespread usage in government agencies, educational organizations, and, more recently, in the
household. As a result of this technological progress, the implementation and application of IT is
a significant driving force behind many socioeconomic changes. As the utilization and
commercialization of IT becomes more widespread throughout the world, the adoption of novel
IT can generate new business opportunities and various benefits (Ghobakhloo et.al., 2012).
According to Govender and Govender, (2013) technology availability is quite often mistaken for
technology adoption and use. Technology has been made available to almost all tertiary
institutions and at least some public schools. However, in most tertiary institutions many
professors still refuse to use technology to enhance their lectures and many educators in schools
have not yet “come on board” in a manner of speaking.
It is but natural that adoption of new and fashionable products with latest IT-enabled systems is
higher and more prevalent among youths, and more so, with the Generation Z (Post-Millennials
or iGeneration) and Millennial who are believed to be more IT savvy and but have less emotional
intelligence than their predecessors. Electronic banking uses the internet and telecommunication
services as the delivery channel to conduct banking activities such as transferring funds, paying
41
bills, providing the mini statement, paying credit card bills, mobile top-ups and so on. From the
customers’ point of view, e-banking allows customers an easier access to financial services and
time saving in managing their finance. It also applies to the customers belonging to the
Generation Z, Millennia's and their predecessors in Nepal also. In recent decades, e-banking has
revolutionized the banking system all over the world, and Nepal is also not an exception to it. All
‘A’ class financial institutions in Nepal provide ATM, internet banking, and mobile banking
services these days. Although use of electronic communication and internet in Nepal has been
widely popular, adoption and use of e-banking has not proportionately increased. Banks and
financial companies to survey customers’ requirements on a regular basis in order to understand
factors that can affect their intention to adopt or use Internet and electronic banking. Since
youths including the Generation Z customers are one of the primary adopters of innovation and
new technology, it is relevant to study such customers’ perception towards the adoption of e-
banking in Nepal (Sthapit and Bajracharya, 2019).
According to Govender D. W., (2013) overall the respondents’ perceptions were somewhat
positive across most constructs with notable exception of Perceived behavioral Control and
Facilitating conditions. One of the main barriers to technology implementation perceived by the
educators in this study is the mismatch between ICT and the class time frame of the existing
curricula. It follows that placing computer in schools is not enough for attaining educational
change. The introduction of ICT into education requires equal innovativeness in other aspects of
education. Both policymakers and educators share this responsibility. Policy-makers should
provide additional planning time for educators to experiment with new ICT-based approaches.
This may be attained by reducing the teaching load for the educators. To obtain a better result for
“facilitating conditions”, provision of resources will be necessary, not only in terms of computer
equipment, but also proving the necessary infrastructure to support effective operation of these
systems. Educators will require support, especially those that have never been exposed to these
technologies before.
Nath (2001) tried to study examines banker’s view on providing banking services to customer
using the web. Especially, it addresses issue such as the strategic need for internet banking, its
effect on customer-bank relationships and customer’s experiences in internet banking. Data
42
collected from 75 banks show that most banks do not yet offer full-fledged internet banking.
However, most banks have plans to do so. Furthermore, bankers see internet banking as a
strategic opportunity that can reduce transaction costs, enhance customer service, increase the
customer base and improve cross-selling opportunities. In addition, internet banking is perceived
more favorably by banks that offer it compared to those that do not.
Kumbhar (2011) evaluated major factors (i.e. service quality, brand perception and perceived
value) affecting on customer’s satisfaction in e-banking service settings. This study also
evaluates influence of service quality on brand perception, perceived value and satisfaction in e-
banking. Required data was collected through customer’s survey. For conducting customer’s
survey linker scale, based questionnaire was developed after review of literature and discussions
with bank managers as well as experts in customer service and marketing. Result indicates that,
perceived value, brand perception, cost effectiveness, easy to use, convenience, problem
handling, security assurance and responsiveness are important factors in customers satisfaction in
e-banking. It explains 48.30 percent of variance. Contact facilities, system availability,
fulfillment, efficiency and compensation are comparatively less important because these
dimensions explain 21.70 percent of variance in customer’s satisfaction. Security assurance,
responsiveness, easy to use, cost effectiveness and compensation are predictors of brand
perception in e-banking and fulfillment, efficiency, security assurance, responsiveness,
convenience, cost effectiveness, problem handling and compensation are predictors of perceived
value in e-banking.
Rotchanakitumnuai and Speece (2003) conducted a research on barriers of internet banking

adoption to the corporate customer of Thailand. The findings of this research suggest that
security of the internet is a major factor inhibiting wider adoption. Those already using internet
banking seem to have more confidence that the system is reliable, whereas non-users are much
more service conscious, and do not trust financial transactions made via internet channels. Non-
internet banking users tend to have more negative management attitudes toward adoption and are
more likely to claim lack of resources. Legal support is also a major barrier to internet banking
adoption for corporate customers.
43
Lafore and Li (2005) conducted a study to investigate the market status for online banking in
China. With the recent and forecast high growth of Chinese electronic banking, it has the
potential to develop into a world-scale internet economy and requires examination. The results
show Chinese online bank users were predominantly males, not necessarily young and highly
educated, in contrast with the electronic bank users in the West. The issue of security was found
to be the most important factor that motivated Chinese consumer adoption of online banking.
Main, barriers to online banking were the perception of risks, computer and technological skills
and Chinese traditional cash-carry banking culture. The barriers to mobile banking adoption
were lack of awareness and understanding of the benefits provided by mobile banking.
Eriksson et.al. (2005) conducted a study of technology acceptance of internet banking in Estonia,
an emerging East European economy. The findings suggest that internet bank use increases
insofar as customers perceive it as useful. The perceived usefulness is central because it
determines whether the perceived ease of internet bank use will lead to increased use of the
internet bank. Put differently, a well-designed and easy to use internet bank may not be used if it
is not perceived as useful. We thus, conclude that the perceived usefulness of internet banking is,
for banks, a key construct for promoting customer use. We also suggest that models of
technology acceptance should be re-formulated to focus more on the key role of the perceived
usefulness of the service embedded in the technology.
Curran and Duffy (2005) conducted a research aims to focus on the examination of factors that
influence consumer attitudes toward and adoption of self-service technologies (SSTs). A
comparison of the results of the model tests on the three technologies provides evidence that
different factors influence attitudes toward each of these technologies and offers an explanation
of the varying degrees of acceptance found among consumers. This research has demonstrated
that multiple factors need to be considered when introducing technologies into the service
encounter and that the salient factors may vary among technologies and their stages in the
adoption process.
Ahmed (2006) examined the issues related to the development of the internet and ecommerce
(EC) in the Kingdom of Saudi Arabia. The key challenges identified for Saudi’s organizations
are the continuing relying on face-to-face contact principles, problems with information
44
overload, charges still expensive, the need for technical support and expertise, lack of a
management commitment and understanding the potential role of information technology (IT) on
the country’s future and middle aged and older people were more reluctant to use IT.
Jenkins (2007) conducted a study to examine the factors affecting the adoption of internet
banking services by domestic commercial banks in a sparsely populated small island. Evidence
from survey studies and from bank’s websites indicated that banks in North Cyprus have been
consistently moving toward providing internet-banking services despite a very small potential
market to share. In 2004, the majority of commercial banks claimed that the potential market was
too small to adopt internet banking services in North Cyprus. In 2006, the same banks were in
the process of introducing internet banking as an assurance to their customers that they would be
able to maintain a competitive quality of service in the future, hence avoid losing their customers
to the branches of foreign banks.
(Laukkanen T. , 2007) conducted study to explore and compare customer value perceptions in
internet banking. The purpose especially is to compare customer perceived value and value
creation between internet and mobile bill paying service. The results indicate that customer value
perceptions in banking actions differ between internet and mobile channels. The findings suggest
that efficiency, convenience and safety are salient in determining the differences in customer
value perceptions between internets.
Mahdi and Dawson (2007) tried to illustrate how the process of technological change is shaped
by a combination of contextual elements that relate to the political and social history of Sudan.
The development in infrastructure, relationships with economically powerful industrialized
countries and the attitudes and perceptions of key decision makers are discussed. The findings
highlight the needs for bank general managers and IT managers to collaborate in the
establishment of IT strategies and in ensuring that there are sufficient staff and budgetary
resources for successful implementation. There is also a need to develop comprehensive banking
policies in Sudan in order to support the replacement of traditional manual methods of banking
with more advanced computer-based systems. Managing this process is not simply a technical
issue, but a complex socio-political challenge that requires management sensitivity to the context
within which change is taking place.
45
Prabhakar (2000) conducted a study on the adoption of business-to-business and business-to-
consumer, e-commerce has not simultaneously considered trust and risk as important
determinants of adoption behavior. Further, trust in information technology has not been
addressed to a great extent in the context of e-commerce. This research explicitly encompasses
the electronic channel and the firm as objects to be trusted in e-commerce. Our conceptual model
leads us to believe that trust in the electronic channel and perceived risks of e-commerce are the
major determinants of the adoption behavior. Based on the social network theory and the trust
theory, determinants of trust in the electronic channel are included in the research model. This
research is expected to provide both theoretical explanations and empirical validation on the
adoption of e-commerce.
Banstola (2007) financial institutions are slowly moving from Brick and Mortar (Physical
branches) to Click and Order (e-banking). ATMs are the most popular electronic delivery
channel for banking services in Nepal. Only few customers are using e-banking facilities.
Nepalese financial institutions till date have not faced any kind of electronic fraud or risk. Banks
have basic security tools like firewall, lightening power surge protection. However, it is found
that some banks are in lack of having regular back up of website information and e-banking
policy. Nepalese banks are using e-banking for their own convenience and for the purpose of
retaining exiting customers. The cost analysis of most of the banks in Nepal seems to be either
inadequate or not applied due to their narrow space of business transaction or lack of sufficient
tools. No significant correlation was found between uses of e-banking and gender, marital status
or salary of customer. However, it was found that use of e-banking was significantly associated
with age and education.
Haque et.al., (2009) conducted a research to find out significant factors of consumer’s perception
on e-banking transaction by Malaysian Bank Consumers. The study utilizes a combination of
theoretical frameworks and quantitative techniques to testify the statistical relationships between
consumer perceptions on e-banking transaction. Meanwhile, factor analysis was performed to
extraction and make initial decision on the number of factors underlying asset of measured
variables of interest. Thereafter, structural equation mode (SEM) was estimated to anticipate the
effects of the explanatory variables. This study shows that only protected transaction, have
significant impact on consumer’s perception about e-banking security, followed by service
46
quality and regulatory framework issues. This study is the first that seeks to ascertain the insight
into e-banking in Malaysia, which has not been previously been investigated and much statistical
significance makes this study a potential cornerstone for future research. Therefore, this study
thus sets an important benchmark for further research in the area.
Kräuter and Faullant (2008) studied on the acceptance of internet banking to investigate the role
of internet trust as a specific form of technology trust in the context of internet banking.
Furthermore, the integration of propensity to trust within the hierarchical structure of personality
and its applicability to technological systems are investigated. The results confirm the influence
of internet trust on risk perception and consumer attitudes towards internet banking. Propensity
to trust is a determinant not only for interpersonal relationships but also for trust in technological
systems.
Moutinho and Smith (2000) conducted a research on internet retail banking. The purpose of this
research was to examine the online retail banking industry and determine if there is evidence that
online banking will be a dominant player in the financial services retail marketplace. The
researcher has used Porter’s five-force model to conduct the industry analysis. The result
suggests that online banking is still in its infancy, although with great potential. According to
FDIC, while approximately 40 percent of the 10,623 banks and thrifts in the US market have a
website, only 376 offer transactional internet banking at the time of the study. About 30 internet-
only banks or a pure-play format operates in the USA. All of the web-only banks in the USA
combined have about 250,000 depositors, out of the nearly six million customers who have
stated that they do significant banking activities over the internet.
Maënpaää et.al., (2008) examined the role of expertise measured in terms of use frequency and
length of use in moderating consumer perceptions of dimensions of internet bank services. A
survey of three hundred respondents investigated differences in perceptions of the proposed
service dimensions. The results reveal that consumer’s perceptions differed in four of seven
dimensions of internet bank services when examined along the criterion of expertise. The most
interesting result is that security is not a concern for any of the user groups. Also, an interesting
finding is that the dimensions of status, personal finances and investment proved to be U-shaped.
Practical implications the findings of this research provide several ideas for marketing of internet
47
banking (IB) and for developing IB websites. For example, appeals of status and ego-
gratification in advertising can be used to attract new consumers to IB. Also, designing auxiliary
features or tools for personal finance management into bank’s websites would prove to be sound
investment. This research suggests that expertise has correlation with demographics as well as in
perceptions of service dimensions. Thus, it may be possible to apply expertise for segmenting
markets along demographic criteria and then to offer appropriate mix of services for each
segment.
Wong et.al., (2008) tried to re-examine the role of traditional service quality in an e-banking
environment by providing a review of how traditional service quality perceptions have evolved
through the current and continuing stream of change in banking technology and the
corresponding changes in the nature of how banks interact with their customers. The result of
this study suggests that there exists a large discrepancy between customer expectations and their
perceived performance of traditional banking services.
Laukkanen et.al., (2008) tried to explore understanding of innovation resistance by dividing

internet banking non-adopters into three groups based on their intentions to use the innovation.
Thereafter, the aim is to identify how the resistance differs in these customer groups. Significant
differences were identified between the groups explored. The resistance of the rejecters is much
more intense and diverse than that of the opponents, while postpones show only slight resistance.
The results also indicate that psychological barriers are even higher determinants of resistance
than usage and value, which are constructs related to ease-of-use and usefulness determining
acceptance in the traditional technology acceptance model. Moreover, the findings highlight the
role of self-efficacy in bank customer’s risk perceptions to internet banking.
Hwang and Thao (2008) tried to investigate how small and medium-sized travel agencies as
business customers perceive the benefits and barriers of internet use that related to the
development of a positive relationships and loyalty with their service suppliers. The major
benefits of internet user were interactional and transactional benefits. The main barriers of the
internet user were organizational weaknesses, poor IT infrastructure, mistrust of the internet
system and legal issues. While the benefits positively contributed to the service and social bonds,
the barriers negatively impacted the development of these bonds. The interactional benefits play
48
a major role to increase switching costs. The customer relationships and switching costs
concurrently enhanced the customer loyalty.
Hwang and Thao (2008) tried to investigate how small and medium-sized travel agencies as
business customers perceive the benefits and barriers of internet use that related to the
development of a positive relationships and loyalty with their service suppliers. The major
benefits of internet user were interactional and transactional benefits. The main barriers of the
internet user were organizational weaknesses, poor IT infrastructure, mistrust of the internet
system and legal issues. While the benefits positively contributed to the service and social bonds,
the barriers negatively impacted the development of these bonds. The interactional benefits play
a major role to increase switching costs. The customer relationships and switching costs
concurrently enhanced the customer loyalty.
Clark (2009) examined the relationships among three dimensions of service quality that
influence overall internet banking service quality and it is subsequently effect on customer
satisfaction in a New Zealand banking context. The results show significant relationships among
online customer service quality, online information system quality, banking service product
quality, overall internet banking service quality and customer satisfaction.
Manzano et.al., (2009) tried to analyze the determinants of internet banking use, paying special
attention to the role of product involvement, perceived risk and trust. Data analysis shows that
technology acceptance model (TAM) beliefs and perceived risks (security, privacy, performance
and social) have a direct influence on e-banking adoption. Trust appears as a key variable that
reduces perceived risk. Involvement plays an important role in increasing perceived ease of use.
Rensleigh (2010) conducted a study on what are internet banking customer’s perception on
information protection when using internet banking services and products? The research study
consisted of a detailed literature review, followed by an empirical component, which consisted of
a quantitative questionnaire. The questionnaire used in this study consisted of eight sections
covering biographical information, financial institution and internet banking, internet banking
service quality and delivery, internet banking functionality, internet banking costs, internet
banking convenience and relationships, internet banking trust and internet banking security. The
49
final conclusion was internet-banking products and services will continue to grow across various
divides and platforms as the internet costs decrease in future, the growth of internet related
products and services such as internet banking will increase.
Kawamala (2013) tried to study examines customers perception on e-banking services in

Tanzania. Especially, it addresses issue such as the strategic need for internet banking, its effect
on customer-bank relationships and customer’s experiences in internet banking. The results of
this research reveal that internet banking is perceived more favorably by banks that offer it
compared to those that do not. It was revealed that there were different factors causes Azania
bank to adopt e-banking system such as Government support, availabilities of the equipments,
customers satisfaction on their needs, competition with other bank perceived ease of use and
perceived usefulness, trust and security aspects are deemed crucial factors to explaining internet
banking adoption in Tanzania and level of education and income level of respondents may be a
major determinant in influencing the adoption of internet banking. The introduction of Mobile
banking, the m-banking/mobile phone banking such as M-Pesa and Tigo Pesa have increased the
speed of money deposits and transfers via the use of electronic banking run by these companies
both in urban and rural areas.
This chapter explored the concept of information technology, perception towards IT adoption
and same in electronic banking. It was revealed that the varied definition was based on the
context, situation and the environment under which the concept existed. However, the common
theme that permeates through all the definitions was underlined by key words such as the
exchange of information using ICT tool to foster good customer relation. In other words,
electronic banking was explained as a mechanism by which banks adopt in order to deliver
quality services to their clients.
The review also looked at the various forms of electronic banking. Benefits and challenges
associated with adaptation of electronic banking were also captured under the chapter. Lastly,
empirical studies were also reviewed. Various published and unpublished papers are followed to
make the research fruitful and fill the gaps of previous studies. This study helps to conceptualize
about the theoretical framework within which this study was conducted.
50
There is gap between the present research and previous researches in terms of some objectives,
tools used for analysis, period of data collection and so on. The topic is also considered as the
difference between the previous researches and the current research. The main objective here is
to draw a genuine conclusion about the customers' perception towards e-banking adoption
considering the previous studies. In this context, the previous studies can't be ignored because
they provide the foundation to present study. Thus, to complete this research work, many books,
journals, articles and various published and unpublished dissertations are followed as guideline
to make the research effective and smooth through these reference materials.
2.3 Theoretical Framework
A study framework is the basis for thinking about what to do and about what it means,
influenced by the ideas and research of others. A framework can help to explain why a study can
be doing a in a particular way. It can also help us to understand and use the ideas of others who
have done similar things. Framework can be used like a travel map. With reference to the
literature review, the following conceptual model was developed. The model draws much input
from the literature mentioned. Specifically, this study considers various variables perceived ease
of use, perceived usefulness, perceived risk, cost and perceived behavioral control as
consequences of customers' perception towards E-banking Adoption.
In order to fill the research gaps the following study framework model is proposed with respect
to aforementioned literature review. In order to fill the research gaps the following theoretical
framework, which is presented in figure 2.6, is proposed with respect to literature review.
Dependent Variable Independent Variable
Perceived usefulness
Perceived ease of use
51
Customers Perception Perceived Risk
towards E-banking
Adoption Cost
Perceived Behavioral control
Figure 2.6: Research Framework
Variables under Study
Perceived Usefulness
Perceived as useful or convenience is an extent of people believe that using such a system, a
specific product will enhance the implementation of their own work (Davis F. , 1989). This was
defined by Fred Davis as "the degree to which a person believes that using a particular system
would enhance his or her job performance". It means whether or not someone perceives that
technology to be useful for what they want to do.
Perceived Ease of Use
Ease to use is the "degree to which a person believes that the system can be used without special
effort." (Davis F. , 1989). Ease to use factor, or also known as the Friendly Website for users is
one of the main factors to be considered in the technology acceptance model (TAM). If the
technology is easy to use, then the barriers conquered. If it's not easy to use and the interface is
complicated, no one has a positive attitude towards it.
Risk Awareness
Risk awareness is the role of cognition of risk has been studied extensively in business to learn
intend to use the service users as well as the decision to accept use of the customer service. Risk
52
awareness is the raising of understanding within the population of what risks exist, their potential
impacts, and how they are managed.
Cost
Cost is understood that the cost of customer has to pay when using EB service, the cost of money
and the cost of time. Liao and Cheung, (2002) conducted a study on consumer attitudes toward
online banking services and pointed out that prices influence the attitude of customers with
online banking services.
Perceived behavioral control
According to Theory of intended behavior Ajzen and Fishbein (2000) the factors that promote
the actual behavior is intention performing such acts. Intent to be determined by three factors:
attitude, subjective norms and perceived behavioral control. That factor reflects the appreciation
of the positive or negative individuals of a certain behavior.
53
CHAPTER III
RESEARCH DESIGN AND METHODOLOGY
This chapter is designed to explain the research methods used to meet the stated objectives of the
study. It explores the research process regarding Customer’s perception towards E-banking
Adoption in the context of Nepalese urban society. This chapter hence provides information
about research design, sources of data, questionnaire, data collection procedures, pilot study,
population and sampling, instrumentation, administration of instrument and data analysis plan.
The primary objective of this chapter is to highlight the methods and procedure utilized to get the
most accurate result following the set objective of the research topic. The design and methods
have been applied according to the research type, which is descriptive.
3.1 Research Design
Sekaran,(2003) indicated that after identifying the variables in developing the conceptual
framework, the subsequent step is to design the research in a way that the data can be collected
and analyzed. Malhotra,(2004) research design is a framework or blueprint for conducting
marketing research project. It provides details of the necessary procedures for obtaining the
information needed to structure and to solve marketing research problems.
A systematic research is carried out for the purpose of making findings. A descriptive as well as
explanatory research was carried out for the purpose of this research. The research is descriptive
in nature as it describes data and characteristics about the population being studied, solely on the
basis of statistics, without any form of manipulation. The research is also explanatory since it has
been conducted to identify the extent and nature of cause-and-effect relationships among the
dependent and independent variables.
Basically, this study is based on survey research design for understanding Customers perception
towards E-banking adoption in the urban areas of Nepal. Hence, for this, questionnaire and semi
structured interviews were used. For the collection of primary data, a set of questionnaire has
54
been prepared and distributed within the customers of banks in urban areas of Nepal. This study
was conducted using both the qualitative and quantitative research.
3.2 Population and Sample
The total population of this study includes e-banking users from urban areas of Nepal including
Kathmandu valley and other cities of Nepal. A total of 280 questionnaires were distributed to
different e-banking using customers all over Nepal majorly city areas. Among these 20 forms
were collected in order to conduct research in sample in first stage.
3.3 Nature and Sources of Data
The data used in this research is primary in nature. All the data has been collected from the
respondents via the structured questionnaire and field survey. Primary data is a type of
information that is obtained directly from first-hand sources by means of surveys, observation or
experimentation. It is data that has not been previously published and is derived from a new or
original research study. In this research primary data has been used to meet the research
objectives and draw genuine conclusions in the end. Primary data was gathered by means of
questionnaires.
The findings of this research were based on the primary survey. The data was collected by
formulating a set of questionnaire and then the questionnaire was distributed to the customers of
the bank. So, the findings have been totally based on the data and facts provided by the sampled
respondent. The study used various instruments of data gathering such as questionnaires in order
to collect quality and reliable data. In this way, the research has been designed to pinpoint the
major existing problems and issues and thereby providing the applicable recommendation and
thus, facilitate the end user of this research study.
55
3.4 Instrumentation
The questionnaires are based on the study of TAM model in the field of banking in several
countries around the world such studies. The instrument was a questionnaire in English
distributed to 280 respondents from many cities of Nepal. Construction of the questionnaire was
used from the study of (Davis F. , 1989). Questionnaire has been divided into two sub
categories. Initial part consisted of information related with the personal details gender, age,
monthly income, and education. Second part of the questionnaire contained survey specific
questions. It is further divided into six different sub categories as per the number of variables.
Under each variable, there exist four questions. The full questionnaire is presented in Appendix
I. Respondents were asked along a 5 point Likert-scale to which degree they agreed or disagreed
on the specific items (1= Strongly disagree; 5= Strongly agree).
The data and information collected were categorizes, tabulated, and analyzed by using
appropriate statistical tools. Here, data from questionnaire have been gathered and tabulated
systematically and then analyzed by using SPSS software. This report has followed the survey
instrument using scales that were already validated in previous researches.
3.5 Reliability and Validity
Reliability is synonymous with the consistency of a test, survey, observation, or other measuring
device. Research requires dependable measurement. Measurements are reliable to the extent that
they are repeatable and that any random influence, which tends to make measurements different
from occasion to occasion or circumstance to circumstance, is a source of measurement error.
Reliability is the degree to which a test consistently measures whatever it measures. The idea
behind reliability is that any significant results must be more than a one-off finding and be
inherently repeatable. Other researchers must be able to perform exactly the same experiment,
under the same conditions and generate the same results. This will reinforce the findings and
ensure that the wider scientific community will accept the hypothesis. Without this replication of
statistically significant results, the experiment and research have not fulfilled all of the
requirements of testability.
56
Validity refers to the degree in which our test or other measuring device is truly measuring what
we intended it to measure. In other words, validity reflects the truthfulness of findings. It
determines whether the study truly measures what it was intended to measure or how truthful the
study results are. It refers to the accuracy of a measure and a measurement is valid when it
measures and perform the functions that it support to perform. Validity refers to how well a
measurement truly represents characteristics that exist in the phenomenon being investigated. In
order to guarantee external validity, measures were taken to collect a sample that is as
representative as possible.
The purpose of the validity and reliability analysis is to determine whether data are trustworthy
or not. The designed questionnaire is finalized before requesting the respondents to participate.
For the reliability test, Cronbach’s Alpha was calculated for this questionnaire. This test is used
to check the reliability of the data collected for different variable taken in this model. The value
of Cronbach’s Alpha determines the reliability of the data, 0.60 or above is regarded as
acceptable. Here, value of Cronbach's alpha for all the variables are greater than 0.7, which
shows the instrument used and data collected, is reliable and appropriate for further tests. The
result of this study is shown below:
Table3.1 Reliability Test
Variables Cronbach's Alpha
Perceived usefulness 0.82
Perceived Ease to use 0.77
Risk awareness 0.94
Cost 0.79
Perceived behavioral control 0.81
Customer perception towards e-banking adoption 0.83
57
Finally, total 20 item have been checked the reliability, from the table 3.1 shows the Cronbach's
Alpha result of 6 variables, this result indicates that all variable (Perceived usefulness, Perceived
Ease to use, Risk awareness, Cost, Subjective norms, perceived behavioral control, Customer
perception towards e-banking adoption) have good internal consistent with Cronbach's Alpha
from 0.82 to 0.83.
3.3 Data Analysis
The collected responses were coded and entered in SPSS software for the appropriate analysis.
Before analyzing the data, questionnaires including response error or missing values were
removed. The data collected from the survey were analyzed using statistical techniques like
descriptive statistics, Cronbach’s alpha test, ANOVA, Correlation and regression for testing
proposed hypotheses.
3.3.1 Descriptive Analysis
Descriptive statistics (mean and standard deviation) were used to describe results obtained. The
mean values were used to determine the degree of inclination of the respondents towards the
particular factor regarding perception towards e-banking adoption. Similarly, the standard
deviation was used to determine the statistics by which the overall response deviated from the
mean values.
3.6.2 Hypothesis Testing
This section deals with the analysis of possible relationships between prior formulated variables.
For this purpose, the researcher tested hypothesis conducting correlation and regression.
 Correlation: Correlation analysis is conducted to find out the relationship between

independent variables and dependent variable. The correlation analysis not only shows
the relationship between independent and dependent variable but it also shows whether
the independent variable has significant relationship with dependent variable. After
conducting correlation analysis, the researcher has clear view on which variables have
58
positive or negative impact on customers' perception towards E-banking adoption and
whether the variable has significant impact on E-banking adoption.
 Regression: Regression analysis is conducted to predict the relationship between
independent and dependent variable and build a model. The regression model shows
whether overall model is a good fit as well as it shows which variables have significant
impact on customers' perception towards E-banking adoption. Regression model also
helps to build an estimated model that can be used to understand customers' perception
towards E-banking adoption due to perceived usefulness, perceived ease of use, cost, risk
awareness, subjective norms, perceived behavioral control and Customer intention
behavior to EB. It also gives whether there is any multicollinearity present in the data
with help of Variance Inflation Factor (VIF).
59
CHAPTER IV
RESULTS AND DISCUSSION
This chapter contains the analysis, discussion, and interpretation of the result based in data
collected. The analysis is mainly based on primary data which were collected through the
questionnaire filled by respondents. Data are analyzed with the help of SPSS and results are
presented with tables and diagram to make it convenient to interpret. The mean, standard
deviation and frequencies are computed to summarize the data and to assist in examining the
relationships between different variables. Tables and figures are extensively used to analyze the
data.
This section is sub-divided into four parts. The first part deals with the respondent's profile. It
gives detailed information regarding gender of the respondents, age group of respondents,
education of respondents and monthly income of the respondents. The second part analyses and
interprets the collected data through descriptive analysis and third section deals and interprets the
collected data through Correlation and Regression. The final part is the discussion of results
obtained through analysis.
4.1 Respondents Profile
The questionnaire was structured in such a way that the respondent’s personal profile and their
perception towards e-banking adoption could be assessed. In the respondent’s profile there are
gender of the respondents, age group of respondents, education of respondents, and monthly
income of the respondents. The questionnaire was sent to 300 respondents who are the e-banking
users from urban areas of Nepal. Respondents were distributed the questionnaire and their
responses have been analyzed using the SPSS software.
60
4.1.1 Gender of the respondents
The questionnaire was distributed to both male and female respondents. The objective was to
determine the percentage of distribution of respondents by gender. The frequency and percentage
of the respondents is depicted in Table 4.1 and Figure 4.1 below:
Table 4. 1 Gender of the respondents
Frequency Percentage
Female 62 20.7
Male 238 79.3
Total 300 100.00
Gender
Female Male
20%
80%
Figure: 4.1 Gender of the respondents
61
Figure 4.1 and Table 4.1 show gender distribution of the respondents. From the above figure and
table, it is clear that out of total respondents, 79.6 were male and 20.4 were female. Hence,
respondents comprised of 80 percent male and 20 percent female.
4.1.2 Age group of Respondents
The questionnaire was distributed to respondents of different age groups. This was to determine
the percentage distribution of the age groups of people who responded to the given
questionnaire, as shown in Table 4.2 and Figure 4.2.
Table 4.2 Age group of respondents
Particular Frequency Percentag

e
15-20 17 5.7
20-30 248 82.7
30-40 25 8.3
Above 40 10 3.3
Total 300 100
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Age Group
15-20
20-30
30-40
Above 40
Figure 4.2: Age group of respondents
Figure 4.2 and Table 4.2 show age distribution of the respondents, where majority of the
respondents fall under the age group of 20-30. From the above figure and table, it is clear that 17
respondents were under the age group of 15- 20, 248 respondents were of age group 20-30, 25
respondents were of age group 30-40 and 10 respondents were under the age group of above 40.
Out of total respondents’ 5.9 percent were between the age group 15-20, 82.6 percent were fall
between age group 20-30, 8.2 percent were fall under age group 30-40 and 3.3 percent were
above 40 of age. Hence, this result shows that the majority of people using e-banking service fall
within the age group of 20 -30.
4.1.3 Educational Qualification of Respondents
The questionnaire was distributed to respondents having different levels of academic experience.
The educational qualification of respondents is shown in Table 4.3 and Figure 4.3.
63
Table 4.3 Respondents based on Educational Qualification
Particular Frequenc Percentage

y
High School 29 9.7
Under Bachelor 77 25.7
Bachelor Degree 89 29.7
Master's Degree or higher 105 35
Total 300 100
Education
120
100
80
Education
60
40
20
0
High School Under Bachelor Bachelor Degree Master's Degree
or higher
Figure 4.3 Respondents based on Educational Qualification
64
Figure 4.3 and Table 4.3 depict educational qualification of the respondents. It shows that 9.7
percent of the respondents i.e., only 29 respondents were in High School level, 25.7 percent of
the respondents i.e., 77 respondents were in the under-Bachelor level, 29.7 percent of the
respondents i.e., 89 respondents were in Bachelor level and 35 percent of the respondents i.e. 105
respondents were in Master's degree or above. Therefore, this result shows that the majority of
the e-banking users have a qualification Bachelor degree.
4.1.4 Monthly Income of the Respondents
The questionnaire was distributed to respondents having different levels of monthly income. The
monthly income level of respondents is shown in Table 4.3 and Figure 4.3.
Table 4.4 Respondents based on Monthly Income
Particular Frequenc Percentage

y
Below 10000 91 30.3
10000-20000 60 20
20000-40000 88 29.3
Above 40000 61 20.3
Total 300 100
65
Monthly Income
100
90
80
70
60
50
40
30
20
10
0
Below 10000 10000-20000 20000-40000 Above 40000
Figure 4.4 Respondents based on Monthly Income
Table 4.4 and Figure 4.4 depict the distribution of respondents based on monthly income levels
below 10000, 10000-20000, 20000-40000, and above 40000. It shows that the majority of the
respondents i.e., 30.3 percent have income below 10000 which is 91 in numbers. It shows that
29.3 percent of the respondents i.e., 88 respondents have income in between 20000-40000, 203
percent of the respondents i.e., 61 respondents have the income above 40000, and 20 percent of
the respondents i.e. 60 respondents have income in between 10000-20000.
4.2 Descriptive Analysis
This section deals with the descriptive analysis of the data collected through the questionnaires
during the research process. Descriptive statistics is the discipline of quantitatively describing the
main features of collection of data. In order to present descriptive scores for each of the variables
used in the survey, descriptive analyses were performed. Descriptive statistics summarizes the
sample and observations that have been made. In this study, descriptive analysis incorporates the
calculation of statistical measures such as mean and standard deviation. A total of 24 items
(questions) with particular mean score were obtained as output. For this purpose “Five Point
66
Likert Scale” questions was used for each question ranging from ‘Strongly Disagree’ to
‘Strongly Agree’; coded by 1 representing ‘Strongly Disagree’, 2 representing ‘Disagree’, 3
representing ‘Neutral’, 4 representing ‘Agree’ and 5 representing ‘Strongly Agree’. These values
are used to analyze the data with respect to frequencies and aggregation relating to research
questions and variables. Descriptive statistics help us to simplify large amounts of data
associated with these variables in a sensible way.
4.2.1 Perceived Usefulness
Perceived usefulness is one of the independent variables of this research. Descriptive study of
each question drafted and overall descriptive study on this variable is shown below:
Table 4.5 Perceived usefulness
Descriptive of Perceived usefulness N Mean Std.

Deviation
E-banking provides me a convenient electronic financial 300 3.73 1.130

operation interface
E-banking provides me convenient electronic safety certification 300 3.51 1.020
I think that using the e-banking services would enable me to 300 3.79 1.160
accomplish my tasks more quickly
Using E-banking allows me to use banking services quickly 300 3.86 1.102
Average perceived usefulness 300 3.72 1.103
67
Table 4.5 shows the descriptive of the perceived usefulness. There are four statements used to
measure perceived usefulness. Data in the table shows that items have mean ranging from 3.51 to
3.86. It shows that most of the e-banking users feel that using e- banking allows them to use
banking services quickly. Most of the e-banking users agree on the fact that e-banking provides
them convenient electronic safety certification with mean of 3.51. E-banking users have agreed
to most of the statements but the highest mean is on using e-banking allows to use banking
services quickly with mean of 3.86. So, users feel that using e- banking allows them to use
banking services quickly.
Considering the deviation on the response, least deviation is on the statement that e-banking
provides me convenient electronic safety certification with deviation only 1.020 and most
deviation is seen on response that using the e-banking services would enable to accomplish daily
tasks more quickly. On the average, the perceived usefulness is 3.72 and the deviation of the
average perceived usefulness is just 1.103.
4.2.2 Perceived Ease of Use
Perceived ease of use is other independent variables of this research. Descriptive study of each
question drafted and overall descriptive study on this variable is shown below:
68
Table 4.6 Perceived ease of use
Descriptive of Perceived ease of use N Mean Std.

Deviation
I think it is easy to use e-banking services to accomplish my 300 3.68 1.081

banking task
Learning to use e-banking is easy 300 3.60 1.060
These days I prefer e-banking for shopping 300 3.50 1.144
Using e-banking does not require a lot of mental effort 300 3.42 1.117
Average Perceived ease of use 300 3.55 1.100
Table 4.6 shows the descriptive of the perceived ease of use. There are four statements used to
measure perceived ease of use. Data in the table shows that items have mean ranging from 3.42
to 3.68. It shows that most of the e-banking users feel that it is easy to use e-banking services to
accomplish banking task. Most of the e-banking users agree on the fact that using e-banking does
not require a lot of mental effort with mean of 3.42. E-banking users have agreed to most of the
statements but the highest mean is on it is easy to use e-banking services to accomplish banking
task with mean of 3.86. So, users feel it is easy to use e-banking services to accomplish banking
task.
Considering the deviation on the response, least deviation is on the statement that learning to use
e-banking is easy with deviation only 1.060 and most deviation is seen on response that these
69
days I prefer e-banking for shopping with deviation 1.144. On the average, the perceived ease of
use is 3.55 and the deviation of the average perceived ease of use is just 1.100.
4.2.3 Risk Awareness
Risk awareness is other independent variables of this research. Descriptive study of each
question drafted and overall descriptive study on this variable is shown below:
Table 4.7 Risk Awareness
Descriptive of Risk Awareness N Mean Std.

Deviation
E-banking services may not perform well and process payment 300 2.79 1.020
incorrectly
When transaction error occurs, I worry that I cannot get 300 3.04 1.160
compensation from bank
I am worried to use e-banking services because other peoples 300 2.83 1.167
may be able to access my account
It would take me lots of time to learn how to use e-banking 300 2.44 1.145
services
Average Risk Awareness 300 2.78 1.123
Table 4.7 shows the descriptive of the risk awareness. There are four statements used to measure
risk awareness. Data in the table shows that items have mean ranging from 2.44 to 3.04. It shows
that most of the e-banking users feel that "when transaction error occurs I worry that I cannot get
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compensation from bank". Most of the e-banking users agree on the fact that "It would take me
lots of time to learn how to use e-banking" with mean of 2.44. E-banking users have agreed to
most of the statements but the highest mean is on when transaction error occurs they worry that
they cannot get compensation from bank with mean of 3.04. So, users feel worried about getting
compensation from bank when transaction errors occur.
Considering the deviation on the response, least deviation is on the statement that e-banking
services may not perform well and process payment incorrectly with deviation only 1.020 and
most deviation is seen on response that I am worried to use e-banking services because other
peoples may be able to access my account with deviation 1.167. On the average, the risk
awareness is 2.78 and the deviation of the average risk awareness is just 1.123.
4.2.4 Cost
Cost is other independent variables of this research. Descriptive study of each question drafted
and overall descriptive study on this variable is shown below:
Table 4.8 Cost
Descriptive Cost N Mean Std. Deviation
I found that using e-banking services is very costly 300 2.72 1.096
I think in comparison using e-banking services is less 300 3.37 1.103

costly when I see in comparison with time consumed
I think the cost we bear for the use e-banking services is 300 3.34 1.075
not much in comparison to its services and comfort
I think it's cheaper in many ways 300 3.33 1.106
Average Cost 300 3.19 1.095
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Table 4.8 shows the descriptive of the cost. There are four statements used to measure cost. Data
in the table shows that items have mean ranging from 2.72 to 3.37. It shows that most of the e-
banking users feel that the e-banking services are less costly if they are compared to time saving.
Most of the e-banking users agree on the fact that e-banking services are costly with mean of
2.72. E-banking users have agreed to most of the statements but the highest mean is on e-banking
services are less costly if they are compared to time saving with mean of 3.37. So, users feel e-
banking services are not much costly when they are compared to time saving.
Considering the deviation on the response, least deviation is on the statement that with deviation
only 1.075 and most deviation is seen on response that e-banking is cheaper in many ways with
deviation 1.106. On the average, the cost is 3.19 and the deviation of the average cost is just
1.095.
4.2.5 Perceived Behavioral Control
Perceived behavioral control is last independent variables of this research. Descriptive study of
each question drafted and overall descriptive study on this variable is shown below:
Table 4.9 Perceived Behavioral Controls
Descriptive Perceived Behavioral Control N Mean Std. Deviation
I have the resources to use e-banking services 300 3.55 1.076
I have the knowledge to use e-banking services 300 3.72 1.068
I have the ability to use e-banking services 300 3.78 1.084
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Using e-banking helps me to avoid being seen as obsolete 300 3.45 1.038
Average perceived behavioral control 300 3.62 1.067
Table 4.9 shows the descriptive of the perceived behavioral control. There are four statements
used to measure perceived behavioral control. Data in the table shows that items have mean
ranging from 3.45 to 3.78. It shows that most of the e-banking users feel that they have ability to
use e-banking services. Most of the e-banking users agree on the fact that "Using e-banking
helps me to avoid being seen as obsolete" with mean of 3.45. E-banking users have agreed to
most of the statements but the highest mean is on "I have the ability to use e-banking services"
with mean of 3.78. So, users feel that they have ability to use e-banking services.
Considering the deviation on the response, least deviation is on the statement that using e-
banking helps to avoid being seen as obsolete with deviation only 1.038 and most deviation is
seen on response that "I have the ability to use e-banking services" with deviation 1.084. On the
average, the perceived behavioral control is 3.62 and the deviation of the average perceived
behavioral control is just 1.067.
4.2.6 Customer's Perception towards e-banking Adoption
Customers Perception towards e-banking Adoption is the dependent variable of this research.
Descriptive study of each questions drafted and overall descriptive study on this variable is
shown below:
Table 4.10 Customer's Perception towards e-banking Adoption
Descriptive Customer's Perception towards e-banking N Mean Std. Deviation

Adoption
I will use e-banking instead to bank transaction 300 3.54 1.073
I will regular use e-banking to perform banking transactions 300 3.53 1.049
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I will use the e-banking to access information on bank 300 3.64 1.080
accounts in a quick and convenient way
I will introduce to friends, colleagues and relatives to use e- 300 3.60 1.066
banking
Average Customer's perception towards e-banking Adoption 300 3.58 1.067
Table 4.10 shows the descriptive of the customer's perception towards e-banking adoption. There
are four statements used to measure customer's perception towards e-banking adoption. Data in
the table shows that items have mean ranging from 3.53 to 3.64. It states that users agree with
most of the statements that impacts on customer's perception towards e-banking adoption. E-
banking users most agree on the fact that they will use e-banking to access information on bank
accounts in a quick and convenient way with the mean 3.64.
Considering the deviation on the response, least deviation is on the statement that "I will regular
use e-banking to perform banking transactions" with deviation of only 1.049 and most deviation
is seen on response that "I will use the e-banking to access information on bank accounts in a
quick and convenient way" with deviation of 1.080. On an average, the customer's perception
towards e-banking is 3.58, which indicates that e-banking users want to use e-banking services
due to independent variables. The deviation of the average customer's perception towards e-
banking is just 1.067.
4.3 Inferential Analysis
The purpose of this section is to present the method for analyzing the results and test the
hypothesis set in the previous chapter. Inferential statistics are procedures used that allow
researchers to infer or generalize observations made with samples to the larger population from
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which they were selected. It enables use of one or more samples of observations to infer values
of a population. Inferential analysis tests hypothesis to determine if observed differences
between groups or variables are real or occur simply by chance. It produces new information by
making predictions and generalizations based on samples.
4.3.1 Correlations Analysis
Correlations Analysis between variables was studied to find relations among them. Pearson’s
correlations analysis was carried out for the variables having simple multi-option answers.
Correlation matrix was computed to assess the extent or degree of relationship in between the
research variables. A positive correlation reveals that the direction of the relationship is positive
with one increasing reaction to the other’s increase. Meanwhile, a negative correlation reveals an
inverse of the above; an increase in one when the other decreases. This is the correlation analysis
between e-banking variables i.e., perceived usefulness, perceived ease of use, risk awareness,
cost, perceived behavioral control and customer's perception towards e-banking adoption.
Table 4.11 Correlation Analysis
Variables Average customer perception

towards e-banking adoption
Average perceived Pearson Correlation .737

usefulness
Sig. (2-tailed) .000
Average perceived ease of Pearson Correlation .720

use
Average perceived risk Pearson Correlation .355
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awareness Sig. (2-tailed) .000
Average cost Pearson Correlation .613
Average perceived Pearson Correlation .795

behavioral control
Customer's perception towards e-banking adoption and perceived usefulness
The correlation analysis between Customer's perception towards e-banking adoption and
perceived usefulness is 0.737. Since, the P-value is more than α i.e., 0.00<0.05, there is
significant correlation at 0.05 level of significance.
Customer's perception towards e-banking adoption and perceived ease of use
perceived ease of use is 0.720. Since, the P-value is more than α i.e., 0.00<0.05, there is
Customer's perception towards e-banking adoption and risk awareness
The correlation analysis between Customer's perception towards e-banking adoption and risk
awareness is 0.355. Since, the P-value is more than α i.e., 0.00<0.05, there is significant
correlation at 0.05 level of significance.
Customer's perception towards e-banking adoption and cost
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The correlation analysis between Customer's perception towards e-banking adoption and cost is
0.613. Since, the P-value is more than α i.e. 0.00<0.05, there is significant correlation at 0.05
level of significance.
Customer's perception towards e-banking adoption and perceived behavioral control
perceived behavioral control is 0.795. Since, the P-value is more than α i.e. 0.00<0.05, there is
4.4 Regression Analysis
The regression analysis can only tell whether or not a strong relationship exit between two
variables. In statistical modeling, regression analysis is a statistical process for estimating the
relationships among variables. It includes many techniques for modeling and analyzing several
variables, when the focus is on the relationship between a dependent variable and one or more
independent variables.
A correlation analysis can only tell whether or not a strong relationship exists between two
variables. But even if a correlation coefficient indicates that a strong relationship exists between
two variables, the exact shape of the relationship between the two variables cannot be
determined. In this case, regression analysis provides more information about the slope of the
relationship. It is used to describe the nature of a relationship and to make predictions. This
section determines which independent variable explains variability in the outcome, how much
variability in dependent variables are significant (over other variables) in explaining the
variability of the dependent variable.
Linear regression analysis was conducted to identify relationship between the independent
variable (Perceived Usefulness, Perceived Ease of Use, Risk Awareness, Cost and Perceived
Behavioral Control) and dependent variable Customer's Perception towards E-banking Adoption.
The advantage of conducting linear regression analysis included the ability to evaluate multiple
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independent variables that simultaneously affect the dependent variables. It provides us with
more information about the slope of the relationship.
Multiple regression model used this study is;
Ŷ = α + β1X1+ β2X2+ β3X3+ β4X4+β5X5 + ei
Were,
Ŷ= Customer's Perception towards E-banking Adoption
X1= Perceived Usefulness
X2= Perceived Ease of Use
X3= Risk Awareness
X4= Cost
X5= Perceived Behavioral Control
Βi= Coefficient of slope of regression model
Ei= Error Term
4.4.1 Factors influencing customers perception towards e-banking adoption
Table 4.12 Model Summary of Factors influencing customer's perception towards e-banking
adoption
Model R R Square Adjusted R Std. Error of the

Square Estimate
1 .828 .686 .681 1.79036
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Table 4.12 gives the overall model summary of factors influencing customer's perception
towards e-banking adoption. R-square is a statistical measure of how close the data are to the
fitted in the regression line. It is also known as the coefficient of determination, or the coefficient
of multiple determinants for multiple regressions. The definition of R-square is fairly straight
forward; it is the percentage of response variable variation that is explained by a linear regression
model. R-square is always between 0% and 100%. In general, higher the R-square better the
model fits data. Table 4.12 shows that, value of R-square is 0.686 which means that 68.6%
variation on customer's perception towards e-banking adoption is explained by Perceived
Usefulness, Perceived Ease of Use, Risk Awareness, Cost and Perceived Behavioral Control.
Higher R value indicates that there is a strong positive relationship between independent variable
perceived usefulness, perceived ease of use, risk awareness, cost, perceived behavioral control
and dependent variable customer's perception towards e-banking adoption. Further, the standard
error of estimate shows that the estimated regression equation deviates by 1.79036.
Table 4.13 ANOVA
Model Sum of df Mean F Sig.

Squares Square
1 Regression 2062.516 5 412.503 128.691 .000
Residual 942.381 294 3.205
Total 3004.897 299
Table 4.13 gives the description of ANOVA table. ANOVA table is used to analyze whether the
overall model is significant and if model can be applied to the research. The result of table 4.13
shows that p-value is less than α i.e. 0.000<0.05 so, the model is significant at 5% level of
significance. So, multiple linear models can be used to analyze the data.
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Table 4.14 Results of Factors Affecting Customer's Perception towards E-banking Adoption
Model Unstandardized T Sig.

Coefficients
B Std. Error VIF
(Constant) .692 .477 1.452 .148
Perceived usefulness .186 .063 2.953 .003 3.858
Perceived ease of use .103 .065 1.586 .114 3.873
Risk awareness .004 .041 .087 .931 1.369
Cost .188 .054 3.489 .001 1.946
Perceived behavioral control .464 .057 8.116 .000 3.163
Table 4.14 gives results of factors affecting customer's perception towards e-banking adoption.
The table shows whether the independent variables are significant with help of sig value and
whether collinearity is present with VIF. Multicollinearity is present when there is high degree of
correlation present between independent variables. If multicollinearity is present then it affects
output of the research so multicollinearity is tested. VIF is one of the tools to measure multi-
collinearity. The table shows that that there is no multi-collinearity between the independent
variable perceived usefulness, perceived ease of use, risk awareness, cost, perceived behavioral
control and dependent variable i.e. customer's perception towards e-banking adoption as
indicated by the VIF value which is less than 5.
Higher beta values indicate higher dominant influence of independent variables on the dependent
variable. It can be inferred that average perceived behavioral control has the highest dominant
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influence with a beta of 0.464, followed by cost with beta of 0.188, perceived usefulness with
beta of .186, perceived ease of use with beta of 0.103, and finally risk awareness with beta of -
0.004. Significance value lower than 0.05 indicates there is significant relationship between the
independent variables and dependent variable. It can be inferred that perceived usefulness, cost
and perceived behavioral control has a significant relationship with Customer's perception
towards e-banking adoption as both have significance value less than 0.05. Perceived usefulness
has significance value 0.003, cost has significance value 0.001 and perceived behavioral control
has significance value 0.000 which is less than 0.05. Whereas, perceived ease of use has
significance level 0.114 and risk awareness has significance level 0.931. This means they don’t
have significant relationship with Investment on bond market as its value is more than 0.05.
The regression equation based on the coefficients of variables can be inferred as:
Customer's Perception towards e-banking adoption (est.) = 0.692+

0.186(perceived usefulness) + 0.103(perceived ease of use) + 0.004(risk
awareness) + 0.188(cost) + 0.464(perceived behavioral control)
The regression equation helps us to know that all independent variables have positive impact on
customer's perception towards e-banking adoption. The equation also helps to know that
customer's perception towards e-banking adoption is 0.692 irrelevant of independent variables.
4.5 Hypothesis Testing
This section is focused on testing hypothesis developed for the study. Hypothesis evaluates two
mutually exclusive statements to determine which statement is best supported by sample data.
Each hypothesis is tested and analyzed individually and the analysis is done with a system
designed for statistical analyses (SPSS). Seven alternative hypotheses for each independent
variable were drawn for the purpose of identifying relationship between dependent and
independent variables in this study. Each hypothesis is tested on the basis of the Coefficients
Table calculated from regression analysis.
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Hypothesis test between Independent Variables and Dependent Variable:
Test on each of these hypotheses is discussed below:
H1: There is significant relationship between Perceived usefulness and customers' perception
The regression analysis shows that there is significant relationship between Perceived usefulness
and Customer's perception towards e-banking adoption. Since the p-value is less than α (i.e.
0.003<0.05), the relationship is significant.
Hence, the alternative hypothesis (H1) is accepted.
H2: There is significant relationship between Perceived Ease of use and customers' perception
The regression analysis shows that there is no significant relationship between Perceived Ease of
use and customers' perception towards e-banking adoption. Since the p-value is greater than α
(i.e., 0.114 >0.05), the relationship is not significant.
Hence, the alternative hypothesis (H2) is rejected.
H3: There is significant relationship between risk awareness and customers' perception towards
e-banking adoption.
The regression analysis shows that there is no significant relationship between risk awareness
and customers' perception towards e-banking adoption. Since the p-value is greater than α (i.e.
0.931 >0.05), the relationship is not significant.
Hence, the alternative hypothesis (H3) is rejected.
H4: There is a positive relationship between low cost and customers' perception towards e-
banking adoption.
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The regression analysis shows that there is significant relationship between cost and Customer's
perception towards e-banking adoption. Since the p-value is less than α (i.e. 0.001<0.05), the
relationship is significant.
H5: There is a positive relationship between perceived behavioral control and perception towards
e-banking adoption.
The regression analysis shows that there is significant relationship between perceived behavioral
control and Customer's perception towards e-banking adoption. Since the p-value is less than α
(i.e., 0.000<0.05), the relationship is significant.
Table 4.15 Summary of Hypothesis Test
Hypothesis Conclusion
H1: Perceived Usefulness- Customer's Perception towards e-banking Accepted
adoption
H2: Perceived Ease of Use- Customer's Perception towards e-banking Rejected
adoption
H3: Risk Awareness- Customer's Perception towards e-banking adoption Rejected
H4: Cost- Customer's Perception towards e-banking adoption Accepted
H5: Perceived Behavioral Control- Customer's Perception towards e-banking Accepted
adoption
4.6 Discussions
The basic objective of this research study was intended towards detecting and analyzing the
factors that determines customer's perception towards e-banking adoption in Nepal. In order to
do so few basic and important variables were derived from the thorough and in-depth review of
the literature and the self-conceptualization as well as understanding of the concerned
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researchers. Independent variables i.e. perceived usefulness, perceived ease of use; risk
awareness, cost, and perceived behavioral control were taken to check their impact on customer's
perception towards e-banking adoption.
This study examined how different perceived usefulness, perceived ease of use; risk awareness,
cost, and perceived behavioral control make impact on customer's perception towards e-banking
adoption. Correlation analysis has been done in order to find out the relationship between
independent variables and dependent variables. The study shows that three variables namely
perceived usefulness, cost, and perceived behavioral control have positive correlation with
customer's perception towards e-banking adoption.
The research was done on the sample size of 300 representing the population size. The research
is based on the descriptive and interferential analysis. During the course of the data collection,
various demographic elements were considered to depict the profile of respondents. The
demographic variables considered for the study were gender, age group, qualification level,
monthly income levels of the respondents. The gender classification revealed that 20% of the
respondents were female whereas 80% of the respondents were male. The age of respondents
was classified into 15-20, 20-30, 30-40 and above 40 segments. The percentage coverage for
each segment was 5.9%, 82.6%, 8.2% and 3.3% respectively for above mentioned categories.
Regarding education qualification of respondents, 9.5% of respondents are of high school, 25.6%
of respondents are of under Bachelor, 30.2% of respondents are of Bachelor and 34.8% of
respondents are of Masters or above. While coming to the monthly income of the respondents,
30.5% of respondents had monthly income below 10000, 19.7% of respondents had their
monthly income between 10000-20000 and 29.5% of respondents having monthly income
between 20000-40000, while 20.3% had their monthly income of above 40000.
Mean and Standard deviation has been calculated for the descriptive analysis. Through the value
of mean, it is found that all statements of the construct have the mean value greater than 3.0
which indicates that in average majority of the respondents agreed to the constructs that have
been provide to them.
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Regression analysis has been done for hypothesis testing. Through hypothesis testing, it is found
that, three variables perceived usefulness, cost and perceived behavioral control have significant
impact on customer's perception towards e-banking adoption having p-value of 0.003, 0.001 and
0.000 respectively. In contrast, perceived ease of use and risk awareness, in spite of having
positive correlation have no significant influence on customer perception towards e-banking
adoption having p value of 0.114, and 0.931 respectively.
This result is consistent with the (Podder, 2005) survey found that the convenience to have a
positive impact on the decision to use the acquirer. Besides, the convenience significantly
influences the actual behavior of the customers to decide to use acquirer. In the study by Lee et
al (2005) point out that the speed of the Internet and the difficulty in implementing online
transactions that affect the ability of customers to use online banking services. As Featherman
and Pavlou (2003), risks related to the uncertainty of the service, cannot predict and control the
process using the service.
The model then tested using variance inflationary factor in order to identify whether the multi-
collinearity exist or not. After the analysis, the VIF for every independent variable is found in a
range of 1-4(which is less than 5). Therefore, the multi-collinearity for the independent variable
does not exist and concluded that model is good and acceptable.
The findings are consistent with many other literatures. Sthapit & Bajracharya, (2019) concludes
that the customer perceptions measured in terms of usefulness, ease of use and risks significantly
impact on use and adoption of e-banking services by the customers in Nepal. The present study
findings have matched with the proposition of Technology Acceptance Model (TAM), as TAM
posits that perceived usefulness and perceived ease of use are positively and significantly
associated with e-banking use and this is supported our findings as well as user's agree on the
fact that perceived usefulness has impact on customer's perception towards e-banking adoption.
Lafore and Li (2005) found that the recent and forecast high growth of Chinese electronic
banking, it has the potential to develop into a world-scale internet economy and requires
examination. The results show Chinese online bank users were predominantly males, not
necessarily young and highly educated, in contrast with the electronic bank users in the West.
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The issue of security was found to be the most important factor that motivated Chinese consumer
adoption of online banking. Main, barriers to online banking were the perception of risks,
computer and technological skills and Chinese traditional cash-carry banking culture which is
similar to this research finding.
Rotchanakitumnuai and Speece (2003) founds that security of the internet is a major factor
inhibiting wider adoption. Those already using internet banking seem to have more confidence
that the system is reliable, whereas non-users are much more service conscious, and do not trust
financial transactions made via internet channels. Non-internet banking users tend to have more
negative management attitudes toward adoption and are more likely to claim lack of resources.
Legal support is also a major barrier to internet banking adoption for corporate customers which
supports our researches findings.
Therefore, e-banking user would be willing to use e-banking services if there they are easy to
use, understand, less costly and lesser risky. Further, e-banking user can be enhanced by making
it less costly and less risky. Market size must be expanded as it is one of the major constraints as
noted by previous literatures to attract investment. Although present, customers know and use e-
banking service is not much, but in time to demand the use of modern banking services will
increase. Therefore, banks are required to make advance plans to deal with the problem.
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CHAPTER V
SUMMARY AND CONCLUSION
This chapter presents the overview of findings and conclusion of the study. Findings and the
conclusion of the study is based upon the data analysis and hypothesis testing which was done in
the previous chapter. The first section of this chapter includes summary of findings, second
section includes conclusion and third section includes recommendations.
5.1 Summary of Findings
The objective of this research is to examine the factors that impacts customer's perception
towards e-banking adoption. As such the researcher studied various factors like perceived
usefulness, perceived ease of use, risk awareness, cost and perceived behavioral control that
affect the e-banking adoption. The result of this research provides important information about
the impact of customer perception in e-banking adoption in urban area of Nepal.
In conducting this study, the required data were obtained through structured questionnaire. The
questionnaire was adopted from prior studies to measure all variables of the study. To check
validity and reliability of adopted instruments validity and reliability test was also carried out. A
total of 300 respondents fill up the questionnaire filled up through Google forms. The data
obtained were analyzed through SPSS software. In SPSS descriptive analysis, correlation and
regression were conducted. In order to determine the survey result, different statistical tests have
been performed. At first descriptive analysis was done to determine average value and standard
deviation of each variable under each hypothesis. There were four to seven questions to measure
each hypothesis. Respondents answered on five point Likert Scale ranging from 1 to 5 ranging
from strongly agree to strongly disagree. Responses were then analyzed through statistical
software SPSS. The major findings of the study are as follows:
 The overall mean for the perceived usefulness is 3.55, indicating that the majority of
respondents are towards agree level agreement with the statements specified in the study.
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 The overall mean for the perceived ease of use is 2.78, indicating that the majority of
respondents towards agree level of agreement with the statements specified in the study.
 The overall mean for the risk awareness is 3.19, indicating that the majority of
respondents towards agree level of agreement with the statements specified in the study.
 The overall mean for the cost is 3.62, indicating that the majority of respondents towards
agree level of agreement with the statements specified in the study.
 The overall mean for the perceived behavioral control is 3.58, indicating that the majority
of respondents towards agree level of agreement with the statements specified in the
study.
 Customer's perceptions have positive correlation with e-banking adoption as a whole with
correlation coefficient of 0.828. In addition, it is tested significant at 5% level of
significance. (Precisely, all the independent variables namely perceived usefulness,
perceived ease of use, risk awareness, cost and perceived behavioral control have positive
correlation with e-banking adoption.)
 Customer's perception factors have positive impact on e-banking adoption as a whole.
The impact is tested significant at 5% level of significance through ANOVA table.
(Perceived usefulness, cost and perceived behavioral control have significant impact on
e-banking adoption, whereas, perceived ease of use and risk awareness, have no
significant impact on e-banking adoption.)
 Customer's perception factors are meant to explain nearly 68.6% of variation in e-
banking adoption which is shown by coefficient of variation in this study.
 Finally, Customer's perception factors have good potentiality of measuring and are used
as a good predictor of e-banking adoption practices perceived by e-banking users.
 There is significant relationship between Perceived usefulness and Customer's perception

towards e-banking adoption. It is accepted with significant value of 0.003.
 There is significant relationship between perceived ease of use and Customer's perception
towards e-banking adoption which is rejected with significant value of 0.114.
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 There is significant relationship between risk awareness and Customer's perception
towards e-banking adoption which is rejected with significant value of 0.931.
 There is significant relationship between cost and Customer's perception towards e-

banking adoption. It is accepted with significant value of 0.001.
 There is significant relationship between perceived behavioral control and Customer's

perception towards e-banking adoption. It is accepted with significant value of 0.000.
5.2 Conclusion
This study focuses on determining the significance of independent variables i.e. perceived
usefulness, perceived ease of use, risk awareness, cost and perceived behavioral control on
Customer's perception towards e-banking adoption.
From the study, we can conclude that perceived usefulness, cost and perceived behavioral
control have significant impact on e-banking adoption while other factors have no significant
impact on e-banking adoption. So, we can say that customer's feel that perceived usefulness, cost
and perceived behavioral control is the most important factor for e-banking adoption in Nepal.
E-banking customers agree on the fact that using E-banking allows using banking services
quickly. Most of the users agree on the fact that it is easy to use e-banking services to accomplish
banking task. Most of the users disagree on the fact that it takes lots of time to learn how to use
e-banking services. Again, most of the users disagree on the fact that using e-banking services is
very costly. And some users agree on the fact that they have the ability to use e-banking services.
The study shows that perceived usefulness cost and perceived behavioral control in the e-baking
are the main reason for limited number of e-banking users. The cost associated with e-banking
should be affordable to each banking customers and easy manual for using it to new customers as
well as aged peoples. Similarly, habits of peoples do also have biggest influence in the adoption
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of e-banking services so that maximum awareness and availability should be focused in order to
increase users of e-banking services.
5.3 Recommendations
The study has been carried out with prime objective of finding out the relevance of independent
variables on e-banking adoption in urban areas of Nepal. Based on the study it leads to the
following recommendations.
 The data collection for this study was conducted in urban areas of Nepal. This highlights
the necessity to extend this research to a larger and geographically more diversified
sample of consumers.
 With knowing, the factors of e-banking enable the banks to cope the problems of
customers and ultimately helps to customize their e-banking products and services to
cater their needs.
 This study focuses on overall e-banking service and the impact on e-banking adoption.
However, future research can focus upon level of consumer perception towards e-
banking adoption in relation to different groups e-banking users. This will have better
understanding about behavior of consumers, variables associated with e-banking as well
as the impact on adoption level of consumers while using e-banking service.
 For the purpose of this study, a quantitative approach was adopted to identify level of
adoption towards e-banking service. Although the use of quantitative methods is
considered valuable in examining relationships between variables, it is considered to be
weak when trying to explore the reasons for the relationships. As a result, using
qualitative along with quantitative methods is recommended in future studies, to further
examine relationships among the variables.
The study contributes to the general body of empirical evidence about e-banking service and the
perception of the users and tries to explain this phenomenon with respect to Nepalese society.
However, the study does have certain methodological limitations. First of all, this study uses
sample only from some urban areas of Nepal, thus results might not be generalized. Moreover,
90
for this study, convenience sampling technique was used which has certain drawbacks. Results
generated from such sampling might not be the true representative of the target population. All
this raises a new agenda for future researches. Any researcher examining a similar topic in future
has to investigate these parameters and should try to conduct a large-scale survey to make the
results more representative and generalize. The findings of this research study will help banks to
increase their sales through e-banking service. However, the results of this study might not be
exhaustive and further research still needs to be done to validate the findings.
91
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Communications of the ACM ,, 30(1), 99-102.
Curran, K., & Duffy, C. (2005). Understanding and reducing web delays. International Journal
of Network Management, 20(1), 776-797.
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International Journal of Marketing, 3(1), 72-82.
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Information Technology Adoption. Journal of Global Information Management, 7(3), 30-
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Estonia. International Journal of Bank Marketing(9), 200-216.
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Ghobakhloo, M., Hong, T. S., Sabouri, M. S., & Zulkifli, N. (2012, February). Strategies for
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Behavioral Sciences, 12(1), 7473-7476.
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Haque, A., Tarofder, A. K., & Rahman, M. S. (2009). Electronic Transaction of Internet Banking
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Management, 80(1), 248-259.
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Hwang, J. H., & Thao, T. H. (2008). Commercial bank management (5 ed.). Boston: McGraw
Hill Irwin.
Jenkins, H. (2007). Adopting Internet Banking services in a small Island state: Assurance of
bank service quality. Department of Banking and Finance, 14(1), 344-365.
Kawamala, N. (2013). Investigating e-banking and Customer Satisfaction in Tanzanian Banks, A

Case of Azania Bank LTD. The Open University of Tanzania., 5(1), 333-365.
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Kräuter, S. G., & Faullant, R. (2008). Consumer acceptance of Internet banking: The influence
of Internet trust. International Journal of Bank Marketing, 55(1), 483-504.
Kumbhar, V. M. (2011). Service quality perception and customers’ satisfaction in internet

banking service: a case study of public and private sector banks. Reasearch Gate, 8(1),
556-587.
Lafore, S., & Li, X. (2005). Consumers’ attitudes towards online and mobile banking in China.
International Journal of Bank Marketing, 14(1), 776-789.
95
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100
ANNEXURE
Customers Perception towards Information Technology Adoption, A study of customer's

perception towards e-banking Adoption in urban areas of Nepal
Dear respondent,
I am Kiran Bhatt, an MBA student at Apex college. I am conducting research on the topic
‘Perception towards Information Technology Adoption, A study of customer perception
towards E-banking Adoption in urban areas of Nepal)’. The main purpose of this
questionnaire is to collect relevant information for the graduate research program. The
information provided will be kept strictly confidential. You are therefore kindly requested to
fill the questionnaire based on the necessary information related to the study.
Thank you!
Section A: Respondent Profile
Please tick (✓) according to the answers in the boxes that best represents you.
1. Gender:
Male
Female
Others
2. Age:
15-20
20-30
101
30-40
Above 40
3. Education
High School
Under Bachelor
Bachelor degree
Master’s degree or higher
4. Income (Per month)
Below Rs. 10000
Rs. 10000-20000
Rs. 20000-40000
Above Rs. 40000
Section B
Please read each statement carefully and tick the most appropriate answer that indicates how
strongly you agree or disagree with the following statements, where: [1 = Strongly
Disagree; 2 = Disagree; 3 = Neutral; 4 = Agree; 5 = Strongly Agree]
102
a. Perceived usefulness
Particular Strongly Disagree Neutral Agree Strongly

Disagree Agree
1 5
2 3 4
E-banking provides me a
convenient electronic financial
operation interface.
E-banking provides me convenient

electronic safety certification.
I think that using the e-banking

services would enable me to
accomplish my tasks more quickly.
Using EB allows me to use banking

services quickly.
b. Perceived ease of use

Disagree Agree
103
Using e-banking does not require a
lot of mental effort.
Learning to use e-banking is easy.
These days I prefer e-banking for

shopping.
c. Risk Awareness

Disagree Agree
E-banking services may not perform well

and process payment incorrectly.
When transaction error occurs, I worry

that I cannot get compensation from
bank.
I am worried to use e-banking services

because other peoples may be able to
access my account.
104
It would take me lots of time to learn
how to use e-banking services.
d. Cost

Disagree Agree
I found that using e-banking services is

very costly.
I think in comparison using e-banking

services is less costly when I see in
comparison with time consumed.
I think the cost we bear for the use e-

banking services is not much in
comparison to its services and comfort.
I think it's cheaper in many ways.
e. Perceived Behavioral Control
Particular Strongly Disagree Neutra Agree Strongly

Disagree l Agree
105
I have the resources to use e-banking
services.
I have the knowledge to use e-

banking services.
I have the ability to use e-banking

services.
Using e-banking helps me to avoid

being seen as obsolete.
f. Customers perception towards E-banking

Disagree Agree
I will use e-banking instead to bank

transaction.
I will regular use e-banking to perform

banking transactions.
I will use the e-banking to access

information on bank accounts in a quick
and convenient.
I will introduce to friends, colleagues

and relatives to use e-banking.
106
Thank you for filling the survey!
MCKENNA, Jeff & SAGE, Jennifer (2012). “9 Things to Know About Consumer Behavior and
QR Codes”, CMB Consumer Pulse, pp. 1- 16.
HO, Edward, APOSTU, Silviu, MICHAHELLES, Florian, ILIC, Alexander (2013). “Digital
Receipts: Fostering Mobile Payment Adoption Ambient Intelligence” Lecture Notes in Computer
Science, Volume 8309, pp. 140-149.
RYU, Jay Sang (2013). “Mobile Marketing Communicatıons in the Retail Environment: A
Comparison of QR Code Users and NonUsers”, International Journal of Mobile Marketing
(IJMM), Volume 8, Issue 2, pp. 19-29.
ALMEHAIRI, Mira & BHATTI, Tariq (2014). “Adoption of Virtual Shopping: Using Smart
Phones and QR Codes”., Journal of Management and Marketing Research, Volume 17, pp. 1-12.
WARA, Abdulhakeem Aliyu & DUGGA, Sunday (2014). “Enhancing User Experience Using
Mobile QR-Code Application”, International Journal of Computer and Information Technology,
Volume 3, Issue 6, pp. 1310-1315.

107
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replication". MIS Quarterly,, 227–247.
Agarwal, R., & Prasad, J. (1998). A Conceptual and Operational Definition of Personal
Innovativeness in the Domain of Information Technology. Information Systems
Research, 9(2), 204-224.
Ahmad, N., Amer, N. T., Qutaifan, ,. F., & Alhilali, A. (2013). Technology adoption model and a
road map to successful implementation of ITIL. Journal of Enterprise Information
Management, 26(5).
Ahmed, R. (2006). The Indian customer satisfaction index: Nature, purpose, and findings. Hyatt
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Human Decision Processes. (Vol. 5, pp. 179–211). Elsevier.
108
Ajzen, I., & Fishbein, M. (2000, January). Understanding Attitudes and Predicting Social
Behavior. European Review of Social Psychology 11(, 11(1), 1-33.
Bagozzi, R., Davis, F., & Warshow, P. (1992). Development and test of a theory of technological
learning and usage. Human Relations,, 11(1), 660-686.
Bandura, A. (1977). Self-efficacy: Toward a unifying theory of behavioral change.

Psychological Review, 5(1), 191–215.
Banstola, A. (2007). Prospects and challenges of e-banking in Nepal. The Journal of Nepalese
Business Studies, 22(1), 96-104.
Benbasat, I., & Barki, H. (2007). "Quo vadis, TAM?". Journal of the Association for Information
Systems, 12(1), 211–218.
Bernstein, ,. D. (2010). Essentials of Psychology (5 ed., Vol. 5).

Chuttur, M. (2009). Overview of the Technology Acceptance Model: Origins, Developments and
Future Directions. Indiana University, USA: Sprouts: Working Papers on Information
Systems.
Clark, M. (2009). User friendly e-banking: A survey of online e-banking retail initiatives. In
Communications of the ACM ,, 30(1), 99-102.
Curran, K., & Duffy, C. (2005). Understanding and reducing web delays. International Journal
of Network Management, 20(1), 776-797.
Daniel, E. (1999). Provision of Electronic Banking in the UK and the Republic of Ireland.
International Journal of Marketing, 3(1), 72-82.
109
Dasgupta, S., Agarwal, D., Ioannidis, A., & Gopalakrishnan, S. (1999, July). Determinants of
Information Technology Adoption. Journal of Global Information Management, 7(3), 30-
40.
Davis, F. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of
Information Perceived Usefulness, Perceived Ease of Use, and User Acceptance of
Information. MIS Quarterly, 318-339.
Davis, F. J. (1986). A technology acceptance model for empirically testing new end-user. Solan
School of Management, . Massachusetts Institute of Technology.
Eriksson ., K., Kerem, K., & Nilsson, D. (2005). Customer acceptance of internet banking in
Estonia. International Journal of Bank Marketing(9), 200-216.
Gates, R. (1995). The Road Ahead. 1840-1975. London, Viking Penguine.
Ghobakhloo, M., Hong, T. S., Sabouri, M. S., & Zulkifli, N. (2012, February). Strategies for
Successful Information Technology Adoption in Small and Medium-sized Enterprises.
Information, 3(1), 36-67.
Goldstein. (2009). Sensation and Perception (8 ed.). Cengage Learning.
Gonzalez, M. (2008, January). An Alternative Approach in Service Quality: An E-Banking Case

Study. Quality Management, 15(1), 41-59.
Govender, D. W. (2013, February 20). A model to predict educators attitudes towards technology
and thus technology adoption. Routledge, 55(1), 22.
Govender, D. W., & Govender, I. (2013). Technology Adoption: A Different Perspective in a

Developing. Sapienza University. 116, pp. 2198 – 2204. Rome, Italy: Procedia - Social
and Behavioral Sciences .
110
Grauer, M. (2001). Information Technology. International Encyclopedia of the Social &
Behavioral Sciences, 12(1), 7473-7476.
Gregory, R. (1987). ."Perception" in Gregory. Zangwill, 3(1), 598–601.
Gustav, T. F. (1860). Gustav Theodor Fechner. Elemente der Psychophysik (6 ed., Vol. 6).
Leipzig.
Haque, A., Tarofder, A. K., & Rahman, M. S. (2009). Electronic Transaction of Internet Banking
and its Perception of Malaysian online Customers. African Journal of Business
Management, 80(1), 248-259.
Hartwick, J., & Barki, H. (1994). Measuring User Participation, User Involvement, and User
Attitude. MIS Quarterly, 11(1), 59-82.
Hendrickson, A. R., Massey, P. D., & Cronan, T. (1993). "On the test-retest reliability of
perceived usefulness and perceived ease of use scales". MIS Quarterly, 227–230.
Hwang, J. H., & Thao, T. H. (2008). Commercial bank management (5 ed.). Boston: McGraw
Hill Irwin.
Jenkins, H. (2007). Adopting Internet Banking services in a small Island state: Assurance of
bank service quality. Department of Banking and Finance, 14(1), 344-365.
Kawamala, N. (2013). Investigating e-banking and Customer Satisfaction in Tanzanian Banks, A

Case of Azania Bank LTD. The Open University of Tanzania., 5(1), 333-365.
Keil, M., Beranek, P. M., & Konsynski, B. R. (1995). "Usefulness and ease of use: field study
evidence regarding task considerations", Decision Support Systems. Decision Support
Systems, 13(1), 75–91.
Kräuter, S. G., & Faullant, R. (2008). Consumer acceptance of Internet banking: The influence
of Internet trust. International Journal of Bank Marketing, 55(1), 483-504.
111
Kumbhar, V. M. (2011). Service quality perception and customers’ satisfaction in internet
banking service: a case study of public and private sector banks. Reasearch Gate, 8(1),
556-587.
Lafore, S., & Li, X. (2005). Consumers’ attitudes towards online and mobile banking in China.
International Journal of Bank Marketing, 14(1), 776-789.
Lai, P. (2017). The Literature Review of Technology Adoption Models and TheoriesS for the
Novelty Technology. Journal of Information Systems and Technology Management.
Laukkanen, P., Sinkkonen, S., & Laukkanen, T. (2008). Consumer resistance to Internet
banking: Postponers, opponents and rejectors. International Journal of Bank Marketing,
9(1), 440-455.
Laukkanen, T. (2007). Internet vs mobile banking: Comparing customer value perceptions.

Business Process Management Journal, 788-797.
Lee, E. J., Kwon, K. N., & Schumann, D. W. (2005). Segmenting the non-adopter category in the
diffusion of internet banking. International Journal of Bank Marketing, 23(5), 414-437.
Liao, Z., & Cheung, M. T. (2002). Internet-based e-banking and consumer attitudes: An
empirical study. Information & Management, 5(1), 283-295.
Lunceford, B. (2009). "Reconsidering Technology Adoption and Resistance: Observations of a

Semi-Luddite". Explorations in Media Ecology, 8(1), 29–47.
Luran, P., & Lin, H.-H. (2005). Toward an understanding of the behavioral intention to use
mobile banking. Computers in Human Behavior, 8(1), 873-891.
Maënpaää, K., Kale, S., Kuusela, H., & Mesiranta, N. (2008). Consumer perceptions of Internet
banking in Finland: The moderating role of familiarity. Journal of Retailing and
Consumer Services, 3(1), 266-276.
112
Mahdi, M. O., & Dawson, P. (2007). The introduction of information technology in the
commercial banking sector of developing countries: Voices from Sudan. Information
Technology & People, 2(1), 184-204.
Malhotra, N. K. (2004). Marketing Research. New Jersey: Prentice Hall.
Manzano, J. A., Navarré, L. C., Ruiz, C., & Blas, S. S. (2009). The role of consumer
innovativeness and perceived risk in online banking usage. International Journal of Bank
Marketing, 22(1), 53-75.
Mathieson, K. (1991). Predicting User Intentions: Comparing the Technology Acceptance Model
with the Theory of Planned Behavior. Information Systems Research, 9(1), 173-191.
Moore, G. C., & Benbasat, I. (1991). Development of an Instrument to Measure the Perceptions
of Adopting an Information Technology Innovation. Information Systems Reaserch, 192-
222.
Moutinho, L., & Smith, A. (2000). Modelling bank customer satisfaction through mediation of
attitudes towards human and automated banking. International Journal of Bank
Marketing, 20(1), 124-134.
Muniruddeen, L. (2007). An Examination of Individual's Perceived Security and Privacy of the

Internet in Malaysia and the Influence of This on Their Intention to Use E-Commerce:
Using An Extension of the Technology Acceptance Model. Journal of Internet Banking
and Commerce, 12(3), 234-256.
Nath, B. (2001). Consumer resistance to internet banking: Postponers, opponents and rejectors.
The International Journal of Bank Marketing, 1, 440-455.
Olievera, T., & Martins, M. F. (2011). Literature Review of Information Technology Adoption
Models at Firm Level. Electronic Journal of Information System Evaluation, 14(1), 110-
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It Adoption in Urban Thesis

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Perception towards Information Technology Adoption

A Study of Customers Perception towards E-Banking Adoption in

Exam Roll Number: 18220312

A Graduate Research Project Submitted to

Submitted for the Degree of

Master of Business Administration

Recommendation for Approval

Name and Signature of the Adviser:

Acceptance of the External Examiner

Name and Signature of the External

I wish to acknowledge my deep sense of gratitude to Office of Dean of Faculty of Management,

GRP Graduate Research Product

SPSS Statistical Package for the Social Sciences

VIF Variance Inflationary Factor

E-Banking Electronic Banking

ATM Automated Teller Machine

SMS Short Message Service

TAM Technology Acceptance Model

TRA Theory of Reasoned Action

1.2 Statement of The Problem.....................................................................................................5

1.3 Objectives of The Study........................................................................................................7

1.4 The Hypothesis......................................................................................................................8

1.5 Significance of the study.......................................................................................................8

1.6 Limitations of the Study........................................................................................................9

1.7 Organization of the study.....................................................................................................10

LITERATURE REVIEW AND THEORETICAL FRAMEWORK.............................................12

2.1 Review of Literature............................................................................................................12

2.1.1 Concept of Information Technology............................................................................12

2.1.2 The Evolution of Information Technology...................................................................15

2.1.3 Electronic Banking.......................................................................................................16

2.1.6 The diffusion of innovations theory.............................................................................23

2.1.7 Theory of Planned Behavior.........................................................................................25

2.1.8 Technology Acceptance................................................................................................27

2.1.3.2 Usage of Technology Acceptance Model........................................................................33

2.1.6 Comparison between theories.......................................................................................34

2.2 Empirical Review................................................................................................................38

2.3 Theoretical Framework........................................................................................................51

RESEARCH DESIGN AND METHODOLOGY.........................................................................54

3.1 Research Design..................................................................................................................54

3.2 Population and Sample........................................................................................................55

3.3 Nature and Sources of Data.................................................................................................55

3.5 Reliability and Validity........................................................................................................56

3.3 Data Analysis.......................................................................................................................58

3.3.1 Descriptive Analysis.....................................................................................................58

3.6.2 Hypothesis Testing.......................................................................................................58

RESULTS AND DISCUSSION....................................................................................................60

4.1 Respondents Profile.............................................................................................................60

4.1.2 Age group of Respondents............................................................................................62

4.1.3 Educational Qualification of Respondents...................................................................63

4.1.4 Monthly Income of the Respondents............................................................................65

4.2.1 Perceived Usefulness....................................................................................................67

4.2.2 Perceived Ease of Use..................................................................................................68

4.2.3 Risk Awareness............................................................................................................70

4.2.5 Perceived Behavioral Control.......................................................................................72

4.2.6 Customer's Perception towards e-banking Adoption....................................................73

4.3 Inferential Analysis..............................................................................................................74

4.3.1 Correlations Analysis....................................................................................................75

4.4 Regression Analysis.............................................................................................................77

4.4.1 Factors influencing customers perception towards e-banking adoption.......................78

4.5 Hypothesis Testing..............................................................................................................81

SUMMARY AND CONCLUSION..............................................................................................87

5.1 Summary of Findings..........................................................................................................87